Session 5: Understanding inflation and interest rates

Learning outcomes

Interest rates rise with inflation.

Learning outcomes icon. A person climbing to the peak of a mountain. Session learning outcomes

 

By completing this session, you will be able to describe:

  • Inflation and why it is important for financial decisions.

  • Interest payments.

  • How to compute interest payments in simple scenarios.

Glossary icon Glossary

 

A glossary  is always available to you in the course menu on the left-hand side of this webpage.

 

5.1 What is inflation?