I also want 100 of that.

We borrowed money at high interest.

This is actually the power of compounding interest.

That's 100 , right?

We all have heard of it.

Remember, this is the annual interest rate but this is an overnight loan.

We borrowed money at high interest.

Before Interest and Taxes.

So now, by essentially printing money, buying debt, increasing the supply of money, two things happen.

Oh, my rate right.

And this is the same thing as what?

(Applause)

100 interest.

So we'll say Hey this is your cash for tonight, if you need it for the next night, we'll talk again.

What gets raised? A noun phrase, a vital role to announce here interest rates.

Interest on loans is high at present.

So let's say I'm charging r percent.

And of course the difference is the money that he had to spend on tax.

OK, so let's say I borrow 1,000.

The price of money will go down, that's what the federal funds rate is, it's the target rate, so I'll say Fed Funds Rate, it's the target rate that the Fed sets for the overnight borrowing of reserves between banks, that's the Federal Funds Rate, and it will go down and that's how the Fed tries to set the Federal Funds Rate.

The loan carries 5.5 interest.

Are the profits exclusive of taxes?

And it doesn't matter over what

An example of an asset revenue stream would be number 6 sale of ownership.

All right, I just added a zero to everything.

In the last video, I hopefully showed you that if I borrowed P dollars, and I borrow it for a year, and you were to charge me an interest rate of r, or you could say 10r , then at the end and we were to compound continuously.

Interest rates will rise due to monetary tightening.

Accrued interest will be paid into your account.

That's not bright enough.

Which is essentially you take the original amount you borrowed, the interest rate, the amount, the fee that you pay every year is the interest rate times that original amount, and you just incrementally pay that every year.

So now, in this situation. we are compounding the interest.

We borrowed at 5 interest.

This is just my notation.

So I have to pay some interest. There was 10 interest.

If our earnings are 350,000.

Interest accrued from the money left in my savings account.

So this is lending some cash.

If hundreds of people didn't buy this, we couldn't put it on the market.

So I get 10,000.

I had to use that as part of the down payment on my house.

And likewise.

A lot of people, you know, when you hear 10 interest rate or even a 25 interest rate, that no one really makes a big deal about it.

So zero coupon essentially means they're not paying interest until they pay off the whole loan.

It's generating a good bit of cash, but let's say, these guys eat up interest.

And once, again let's say that risk free I could put money