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how to calculate compound interest easy. What happens the following year. I n 1 I n 100 I n I 0 i n i t i a l a m o u n t n 0 t o n t i m e p e r i o d e.
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Finds the Present Value when you know a Future Value the Interest Rate and number of Periods. To understand compound interest first start with the concept of simple interest. Compound interest has a major beneficial impact on investment.
Interest is the cost of borrowing money over time.
Compound interest or interest on interest is calculated with the compound interest formula. Calculating compound interest is complicated. The interest rate and number. Gather variables the compound interest formula.
