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Net Present Value (NPV) and Present Value in Economics: Formula, Examples and Investment Decisions

Financial Economics, Mathematical Economics, Microeconomics, Public Economics

Net Present Value: Discounting, Investment Appraisal and the Rate That Decides EverythingA pound today is worth more than a pound next year. Everyone nods at that. Almost nobody appreciates that the exact size of “more” — a single number chosen before any...

Compound Interest Formula: Simple vs Compound vs Continuous Compounding with Worked Examples

Financial Economics, Mathematical Economics, Microeconomics

Compound Interest: Simple vs Compound vs Continuous CompoundingEinstein almost certainly never called compound interest the eighth wonder of the world. The mathematics is remarkable enough without the endorsement — and once you see why the number e turns up uninvited,...

The Efficient Market Hypothesis: Theory, Anomalies, and Why Fama and Shiller Both Won the Nobel

Behavioural Economics, Financial Economics

Study smarterMarket efficiency, risk and return, and the theory behind asset pricing are covered in the Economics Made Simple Complete Bundle — textbook, practice questions with mark schemes, flashcards and 100 case studies.Introduction: The Most Useful Wrong...

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