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Money & Investing

How money grows, loses value and behaves under risk.

The mental models behind saving, investing and markets, without the hot tips. Explain why an outcome happens and a tutor surfaces the assumption you skipped.

Understand the concepts

  • How does compound interest work?

    See how compound interest works with a £1,000 example, the growth formula, the Rule of 72, and why a fixed rate is not a guaranteed return.

What you’ll learn

  • Why compounding gets dramatic with time
  • The difference between volatility and permanent loss
  • How inflation, rates and fees quietly change outcomes
  • How to read a company before you try to value it

Concepts you’ll explore

CompoundingInflationDiversificationRisk vs volatilityValuation (P/E, DCF)Bonds & yieldsFeesCash flow

Try a question

Two accounts earn the same fixed interest rate. In one, you withdraw the interest each year; in the other, you leave it in. Why do their balances drift apart over time?

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