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Curated OER
What is the Formula for Compound Interest?
View this tutorial for more than just a description of the formula for compound interest! An instructor goes through a problem, showing how to find simple interest and compound interest. After she completes each version, she explains the...
Curated OER
How Do You Use the Formula for Simple Interest?
I=prt is the formula for simple interest. What does each variable represent? I =interest, p =amount originally invested, r =rate of interest (usually in percent), t =time. Now all you have to do is plug in the numbers and do the...
Federal Reserve Bank
The Federal Reserve and You: Interest on Reserves
Understand how the interest rate paid on reserves held by financial institutions works as a monetary policy tool.
Federal Reserve Bank
The Federal Reserve and You: Effects of Change in the Money Supply
Check out this brief video to see how interest rates, economic growth, and inflation rates are affected by changes in the supply of money.
Khan Academy
Khan Academy: Deficit and Debt Ceiling
Learn the basics of the deficit, debt and debt ceiling and what happens if the government defaults on its obligations in this Kahn Academy video. [9:57]
Khan Academy
Khan Academy: Bonds: Relationship Between Bond Prices and Interest Rates
Why bond prices move inversely to changes in interest rate. [13:32]
Federal Reserve Bank
St. Louis Fed: Getting Real About Interest Rates: Economic Lowdown: Episode 14
Audio podcast [11:14] from The Economic Lowdown tells all about interest rates, what they are, the difference between "real" and "nominal", and why inflation matters. Transcript accompanies audio.
Virtual Nerd
Virtual Nerd: How Do You Use the Formula for Simple Interest?
Take a look at this tutorial to understand word problems involving simple interest. [3:00]
Khan Academy
Khan Academy: Is Lm Model: Investment and Real Interest Rates
Discusses why high real interest rates lead to low investment, and why low rates lead to high investment.
Khan Academy
Khan Academy: Is Lm Model: Connecting the Keynesian Cross to the Is Curve
An introduction to the Investment/Savings curve. Expands on the relationship between real interest rate and planned investment by applying it to the Keynesian Cross.
Khan Academy
Khan Academy: Interest Rate Swaps: Interest Rate Swap 1
The basic dynamic of an interest rate swap presented by Sal Khan. [3:50]
Khan Academy
Khan Academy: Is Lm Model: Loanable Funds Interpretation of Is Curve
A discussion of how real GDP can drive real interest rates.
Khan Academy
Khan Academy: Banking and Money: Libor
Video lecture discusses London InterBank Offer Rate (LIBOR). [3:37]
Khan Academy
Khan Academy: Another Quantitative Easing Video
This video explains quantitative easing, also known as credit easing. [2:46]
Khan Academy
Khan Academy: How Loan Deferment Works
Take a closer look at what's happening when student loans are in deferment. [9:14]
Khan Academy
Khan Academy: Renting vs. Buying (Detailed Analysis)
In this video [15:17] we explore a more detailed model, including a downloadable spreadsheet, that factors many of the considerations needed when deciding whether to rent a home vs. buying a home. Click here to download the Home Purchase...
Khan Academy
Khan Academy: Relationship Between Bond Prices and Interest Rates
Bond prices and interest rates are inversely related. Learn about the relationship between bond prices change when interest rates change in this video.
Khan Academy
Khan Academy: Real and Nominal Return
The real interest rate reflects the additional purchasing power gained and is based on the nominal interest rate and the rate of inflation. Learn how to find the real interest rate in this video. [3:10]
Khan Academy
Khan Academy: Mortgage Backed Securities Ii
This video [9:36] is Part II of the introduction to mortgage-backed securities.
Khan Academy
Khan Academy: Mortgage Backed Securities I
This video [7:57] is Part I of the introduction to mortgage-backed securities.
Khan Academy
Khan Academy: Present Value 2
This video [10:12] focuses on Present Value 2 which give you more choices as to when you get your money.
Khan Academy
Khan Academy: Introduction to Interest
Interest is effectively a rent on money. In this video, think about what an interest rate really is. [9:56]
Khan Academy
Khan Academy: Interest Rate Changes, Currency Values, Balance of Pmts, Exports
A video [7:44] explaining how changes in interest rates in one country can impact currency values and other economic conditions in other countries.