Share Market

This section provides introduction to share market. This is by no means any recommendation or techniques for making lots of money.

• Stock Market Jargons
• Mutual Funds Basics
• Mutual Funds Metrics
• Stock Options Basics
• Stock Options Greeks
• Stock Options Strategies

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:

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

For example, in $2020$, I have $$2500$ in my account. Assuming an annual inflation rate stays at $4\%$ over the
next $10$ years. After $10$ years, to purchase the same goods worth $$2500$, I would need $2500 \times (1 + 0.04)^{10}$
$\approx$ $$3700$.

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