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EPISODE · Jul 5, 2011 · 2 MIN

Interest

from World of Business

This two-minute film, created by the School of Business FHNW, shows how an asset’s rate of interest contributes to its value: chickens lay eggs. These can either be used to bake a cake (consumption) or left to hatch into young chickens (appendix), which lay eggs again (compound interest).

Episode metadata supplied by the publisher feed · Published Jul 5, 2011

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What this episode covers

The film illustrates the effect of compounding interest in an entertaining way. Based on the egg-laying hens (interest rate, the eggs in the movie), it is clear that one can either consume or reinvest an asset to generate higher returns. If the interest is applied repeatedly over a long period, the value of the asset increases.

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Interest

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How long is this episode of World of Business?

This episode is 2 minutes long.

When was this World of Business episode published?

This episode was published on July 5, 2011.

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