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The tutorial discusses incorporating complexity into a financial model by revising earlier assumptions. The focus is on adding constants, starting with the inflation rate. The speaker acknowledges the challenge of estimating a realistic inflation rate, noting that while it tends to decrease over time, some inflation is expected. Currently, the U.S. inflation rate is just above 1%, but the speaker suggests using a hypothetical rate of 2%. They emphasize the importance of including a realistic inflation rate in the model, as future amounts—like three million dollars—will have diminished value due to inflation, thus affecting financial projections.
