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How does compounding work? Show in Excel.

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17. Compound Interest. Old Time Savings Bank pays 4 percent interest on its savings accounts. If you deposit $1,000 in the bank and leave it there, how much interest will you earn in the first year? The second year? The tenth year?

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Compounding is illustrated in Excel.

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Please see the attached Excel file. Your whole question is explained there. The basic issue with compound interest is that we keep adding the interest ...

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