Capital is money or tools used to produce more. It can come from savings, family, loans or partners. Payback time = cost ÷ extra income, and there is always risk.
A fixed deposit pays interest for leaving money with a bank. Simple interest = principal × rate × years. Compare rates and safety.
Compound interest is interest on interest. It grows faster than simple interest over time, and it can work for savers or against borrowers.
Rule of 72 estimates doubling time. Starting earlier gives money more time to compound, but starting later still helps. Examples are steady; real life is not.
Inflation is a general rise in prices. Money buys less over time. If prices rise faster than your savings grow, your buying power falls.
What you'll learn
Lesson 4.1
What Is Capital?
Lakshmi sews shirts by hand and makes 2 a day. A sewing machine costs ₹8,000. Would it be worth it?
You'll learn: What capital is and how to estimate when it pays back.
A Tool That Makes More: Capital is money or tools used to produce more.
Where Does Capital Come From? Capital can come from savings, family, loans, or partners.
Is It Worth It? Payback time = cost ÷ extra income. Capital has risk.
Lesson 4.2
Money That Works While You Sleep
Rhea has ₹10,000 she won't need for a year. What if it could earn money by itself?
You'll learn: How a deposit earns simple interest.
A Fixed Deposit: A fixed deposit pays interest. Simple interest = principal × rate × years.
Over Two Years: More years or a higher rate means more interest.
Choosing Where to Save: Banks pay interest because they lend your money. Compare rates, and also safety.
Lesson 4.3
Interest on Interest
Aarav puts ₹1,000 in the bank. Every year, the interest is added and earns interest too. Watch what happens.
You'll learn: How compound interest builds on itself.
The Snowball Starts: Compound interest = interest on the principal plus interest already earned.
Simple vs Compound: Compound grows faster than simple, especially over many years.
It Works Both Ways: Compounding helps savings grow and can make debts grow too.
Lesson 4.4
Time Is the Secret Ingredient
Isha and Dev each invest ₹10,000. Isha starts at 20. Dev starts at 38. Who ends up with more at 56? Same amount, different timing.
You'll learn: Why time matters so much for growth.
The Rule of 72: Rule of 72 = 72 ÷ rate ≈ years to double.
Isha vs Dev: Starting earlier gives more time to compound, even with the same amount.
It's Not Too Late: Starting later still helps. Examples assume steady growth; real life varies.
Lesson 4.5
Why ₹100 Buys Less
Last year, a kilo of mangoes cost ₹100 at Rekha's stall. This year ₹105. Same mangoes. What changed?
You'll learn: What inflation is and why it matters for money.
What Is Inflation? Inflation = prices rising. Money buys less over time.
Cash Under the Mattress: Cash loses buying power under inflation. Inflation has many causes.
Savings vs Prices: If prices rise faster than savings, buying power falls. Central banks watch inflation.
Final challenge
Making Money Work
Lakshmi, Rhea, Aarav, Isha, Dev and Rekha taught you a lot. Let's check what stuck. 10 quick questions!
Try a question
From lesson 4.1: What Is Capital?
What is capital?
A city
Money you spend on snacks
Money or tools used to produce more
Show the answer
Money or tools used to produce more. Capital helps you make more than you could without it.
Learn it the Yukti way
Every lesson is a short story told in scenes, with a quick question after each idea and a review at the end. Wrong answers come with a clear explanation, and Practice brings them back until they stick. Examples use Indian rupees and Indian rules, and show in your own currency in the app.
Yukti is for education only, not financial advice. It teaches general ideas and doesn't recommend specific products. Spot a mistake? Email support@yukti.finance and we'll fix it.
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