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Share Market

This is not for an interview; I am learning about the share market for investment purposes. This is by no means any recommendation or techniques for making lots of money.

Future Value of Money

It is very important to understand the future value of money. The future value of money can be calculated using the formula below:

Future Value of Money=Current Value of Money×(1+Inflation%)Number of Years\text{Future Value of Money} = \text{Current Value of Money} \times (1 + \text{Inflation} \%)^\text{Number of Years}

For example, in 20202020, I have $25002500 in my account. Assuming an annual inflation rate stays at 4%4\% over the
next 1010 years. After 1010 years, to purchase the same goods worth $25002500, I would need 2500×(1+0.04)102500 \times (1 + 0.04)^{10}
\approx $37003700.

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The same formula can be used to calculate compound interest. Instead of using the inflation percentage, use the interest percentage.