This clip cannot be embedded. You can view it at the link below.
00:00 - 03:41
3m 41s
Fifty-three years ago, Jerry's Uncle Leo stiffed Jerry's mother out of $50. Eager to get it back, Jerry's father says, "Do you know what that's worth today in interest alone? $663.45, figured at a conservative 5% interest, compounded quarterly." Morty's calculations are almost accurate, though he does not compound quarterly, and his sum includes the principle, not just the interest.
Video Transcript
Related Clips
Mr. Johnson from the Bank of Central Victoria talks to students about the importance of saving for key expenses and retirement. He writes out the compound interest formula to explain why they would have $727,000 in 25 years if they save 50 cents per week with the bank and the interest doubles their investment every 3 years.
Fry experiences the effects of compound interest on his savings. He started with 93 cents in his bank account 1,000 years ago, and it has had an average 2.25% interest rate over the 1,000 years. Fry learns that he is now a billionaire.
Preston learns about how he can make long term gains with his money through compounding interest.
Charlie explains radiocarbon dating and how it is used to calculate the approximate age of an object. To make his explanation more concrete, he uses an analogy involving a refrigerator and the number of ice cubes in it.
Has profanity
Stringer Bell learns about product elasticity and then explains it to the gangsters he is in business with.