1. THE POWER OF INTEREST

2. DAVE RAMSEY'S INVESTMENT CALCULATOR

3. Interest is the fee for the use of money over time.

4. What are some items you may loan to a friend?

5. What is the opportunity cost when loaning something to someone else?
The owner does not get to use the item for a period of time.

6. Interest is paid by a borrower and received by a lender or a saver.
A saver is paid when they allow a borrower to use their money for a period of time.
Interest is paid by a borrower and received by a lender or a saver.
Who pays interest?
Who receives interest?

7. “HE WHO HAS THE Gold---Rules!”

8. Double A Penny For One Month—How Much At End?
“I do not believe Dave Ramsey’s claim.”
Go to Excel

9. simple interest A1 Type the word Simple A2 Type in 100 A3 = A2 + 5
Paid on the amount of the original investment and does not change over time.
A1 Type the word Simple
A2 Type in 100
A3 = A2 + 5
Drag

10. compound interest
Paid on the amount of the original investment and all accrued interest.
C Type Compound
C Type
C = C2 * 1.05

11. Add $2,000 starting with a $100 investment
E1 Title Add $2,000 per year
E2 Type 100
E3 = (E2 * 1.05)

12. Rule of 72 How many years to double your money?
Divide 72 by the Interest Rate
Interest rate is /4 = 18 years.
Interest rate is /18 = 4 years