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How financially literate are Europeans? Not very - but who knows most?
(www.euronews.com)
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this post was submitted on 27 Apr 2024
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The questions weren't about esoteric financial instruments that allow the rich to get away with murder, they were home ec style questions:
Stuff like
Maybe part of the reason governments keep bailing out bad financial moves by private companies is because the electorate has decided investing is black magic and ignores it.
That's an insanely hard problem to know the equation and do it in your head. Because the interest compounds (current year plus interest adds to last year's total).
The equation is P( (1+r/n)^t*n -1)
If someone asked me to calculate it in the street I would be blue screening but here it was a multiple choice with the options set in a way that you don't really have to calculate compound interest at all, you just had to know it exists (over 110€).