Interest Rates

The video explains how banks operate by providing a safe place for money and making profits through loans. It details how interest is charged on loans, making large purchases more expensive over time. An example of buying a house with a loan illustrates the cost of interest. The concept of simple interest is explained with a formula. The video also covers how banks pay interest on savings accounts, though at lower rates, and why people seek other investment options.

What are the potential costs of taking out a loan for a house?

Why might someone choose to invest their money instead of keeping it in a savings account?