Investment arithmetic
This chapter is about the arithmetic of finance and investment. I hope this excites you. If instead it makes you feel nervous, let me reassure you. Talk of percentages, compound growth rates and discount rates might seem terrifying to some, but, if so, blame the educational system. These are actually simple concepts and they have the delight of being unarguable – back to one apple plus one apple is indubitably two apples. Moreover, the concepts presented here are the key to understanding investments. And who does not want to make one apple into ten apples or more.
Actually, if there is one theme for this chapter it is relationships – such as the relationships between:
proportions and percentages
growth and interest rates ...
Get The Definitive Guide to Business Finance: What smart managers do with the numbers, Second Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
