Applied Mathematics + Finance and Banking
Study compound interest and inflation
Model how savings grow with interest and how inflation changes their real value.
- DifficultyEasy
- Estimated time2–7 days
- Budget₹0
- ClassClass 9–12
- TeamSolo or up to 2
- You needComputer only
Prerequisites: None beyond your class work
Original · by TechnifyedData AnalysisFinance ProjectBeginner friendlyFree to doComputer onlyResearch orientedWell documentedTwo subjects
Overview
Model how savings grow with interest and how inflation changes their real value.
Why build this?
It is the most useful piece of mathematics for anyone who will ever save or borrow.
What you will learn
- How compounding grows money
- How inflation erodes value
- How to model both in a spreadsheet
Skills you will use
Materials and tools
- Spreadsheet
- Current savings and deposit rates
- Published inflation figures
Tools and software
Step-by-step roadmap
Start
You will finish with: charts of nominal and real growth and three lessons for a saver.
- 1
Prerequisites
Nothing special to know first. Then collect the 3 items in the materials list.
- 2
Learn
- How compounding grows money
- How inflation erodes value
- How to model both in a spreadsheet
- 3
Plan
Write the research question, who or what you will study, how many, and the exact questions or measures.
- 4
Build
- Model ₹10,000 at simple and compound interest for 20 years.
- Compare yearly, quarterly and monthly compounding.
- Apply an inflation rate to find the real value.
- Add a monthly deposit.
- Verify the rule of 72.
- 5
Test
Check a sample of your data by hand, and ask whether another explanation fits your findings equally well.
- 6
Document
Keep the raw responses or data safe, anonymise names, and build the tables and charts. Report structure
- 7
Present
State the question, the method in one line, the two or three main findings and their limits. Presentation structure · Viva questions
- 8
Publish
Share a short paper or poster; offer a summary to the people who took part.
Expected outcome
Charts of nominal and real growth and three lessons for a saver.
Other versions of this project
Beginner version
Compare simple and compound interest for ten years.
Advanced version
Compare real returns of a deposit, gold and an index over the last 20 years.
Make this project better
- BasicCompare simple and compound interest for ten years.
- This projectStudy compound interest and inflation
- AdvancedCompare real returns of a deposit, gold and an index over the last 20 years.
Research mode
Text marked "You write this" is a prompt for your own work; everything else is specific to this project.
- Research question
- You write thisOne question you can answer with data, narrow enough to finish in the time you have.
- Hypothesis
- You write thisWhat you expect to find, and why.
- Variables
- You write thisWhat you change or compare, what you measure, and what you hold constant.
- Methodology
- You write thisDescribe the method in enough detail that someone else could repeat it: sample, tools, procedure.
- Data collection
- You write thisSay what you will record, how many times, and how you will keep the records safe.
- Analysis
- You write thisChoose the table, chart or test that answers the question; report averages with their spread.
- Limitations
- You write thisList what could have affected the result: small sample, instrument limits, things you could not control.
Literature review
Find five to eight sources (your textbook, review articles, reports) and note what each says about your question. Group them by idea, not one after another, and end with what is still not known.
References
List every source you used in one style throughout (author, year, title, where it was published, link and the date you opened it).
Working as a team
Solo or up to 2. Suggested roles:
Report and presentation
Report structure
- Title
- Abstract
- Introduction and research question
- Review of what is already known
- Method: sample, tools, procedure
- Findings (tables and charts)
- Discussion
- Limitations
- Conclusion and suggestions
- References
- Annexure: questionnaire or data
Presentation structure
- Research question
- Why it matters
- Method and sample
- Finding 1
- Finding 2
- Finding 3
- What it means
- Limitations
- Conclusion
Viva questions
Try answering before you open each one.
What is compound interest?
Interest earned on both the original sum and earlier interest.
What is the rule of 72?
Dividing 72 by the interest rate gives the approximate years to double.
What is a real return?
The return after subtracting inflation.
Resources
Decision making with spreadsheetIIT Roorkee · Free course course
33 Spreadsheet Projects Course for Beginners – Excel and Google SheetsfreeCodeCamp · Free video course
Analyzing Spreadsheet Data with PythonIBM · Free course courseLibreOfficelibreoffice.orgGeoGebrageogebra.orgDesmos graphing calculatordesmos.comSource and attribution
Original
Written by Technifyed. Free to use for your own school or college project; write the report in your own words. Added 1 Oct 2026.
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