Practical Data Analysis
Interactive lab

Discount cash flows, compound returns

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Interactive lab · change one thing

Discount cash flows, compound returns

Change a discount rate or return scale. Arithmetic averages do not describe compounded wealth.

Synthetic chapter 17 teaching data, not market observations or financial advice. Cash flows are −$10,000 now and equal savings at the end of each of the next three years. Returns are five ordered periods [+10%, −10%, +5%, −20%, +25%] times the selected scale. No taxes, fees, dividends, or additional cash flows are modeled.

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