Скачать или смотреть Interest Rates Explained: A Beginner's Guide to APR, APY & Compound Interest

Interest rates are one of the most important numbers in finance, affecting everything from your car loan to your retirement savings. But do you really understand how they work? In this video, we provide a complete guide to demystify interest rates for good.

First, we'll start with the basics: what an interest rate is and how it acts as the price you pay to borrow money or the reward you get for saving it. We'll break down the critical difference between simple and compound interest, showing you why compounding is your best friend for savings but can be a powerful force against you with debt.

Next, we'll clear up the confusion between two common terms: APR (Annual Percentage Rate) and APY (Annual Percentage Yield). You'll learn why APY is the true measure of your earnings and how to compare financial products accurately.

We'll also explore the major factors that determine the interest rates you're offered, from broad economic conditions to your personal risk profile as a borrower. Finally, we'll address the well-documented and controversial issue of racial disparities in mortgage lending, looking at what the data reveals about differences in interest rates.

By the end of this video, you'll have the knowledge to make smarter financial decisions and understand the forces that shape your borrowing and saving.

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