Understanding why we need more compounding periods

The video tutorial discusses the concept of compounding interest, starting with an example of annual compounding and highlighting the issues with receiving interest only once a year. It then explores the benefits of more frequent compounding, such as quarterly or monthly, and how this affects the growth of investments. The tutorial concludes with a real-life scenario to illustrate the practical implications of compounding frequency.

How does the speaker illustrate the concept of using other people's money for personal gain?

What is the significance of calculating interest on a daily basis as mentioned in the text?

What does the speaker mean by saying that the more times interest is calculated, the more money the investor will make?