New Delhi, May 30 -- I asked AI can inflation reduce the gains from compounding? Here's what it says

I asked ChatGPT how does inflation affect the benefits of compounding? Show how my Rs.50 lakh (lump sum) investment in mutual funds will grow over 20 years and also what will be its inflation-adjusted value.

Inflation doesn't stop compounding-it competes with it.

Your investment may grow substantially in rupee terms, but inflation reduces what those future rupees can actually buy. That's why it's important to look at both:

Nominal value: The actual corpus shown by the fund

Real value: The inflation-adjusted purchasing power

Let's assume:

The compound interest formula is:

FV=PV(1+r)n

Where: FV = Future Value, PV = Rs.50,00,000, r =...