COMPOUNDED INTEREST
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Suppose you deposit $10,000 for 2 years at a rate of 10%.
Calculate the return (A) if the bank compounds annually (n = 1).
Answer: A = 10000(1 + 0.1/1)^2 = $10,201
We have first that P = $10,000, r = 0.1 (10% expressed as decimal), t = 2 (2 years) n = 1.
I FIGURED THIS? PLEASE ADVISE
A-$10,000(1 = .10)^2=10,000(1.1)^2 - 10,000(1.21) - $12,100.
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