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1.2 COMPOUND INTEREST FORMULA
Instructions: Use the following tutorial to help
introduce or reinforce the concept of Compound Interest.
Read through the introduction, then study and familiarize
yourself with the definitions of terms. Next, use
the incremental calculator to study each step of
the process of determining Compound Interest. Finally,
use the calculator for examples to quiz yourself.
Interest that is periodically added to the principal
and thereafter itself earns interest is called compound interest.
The following is the formula for calculating
accumulated amount of money as a result of compound
interest:
A=P(1+i)n
Definitions
Incremental calculator
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