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I understand the simple interest part, however I don’t understand the compounded interest part, need help quick.

I understand the simple interest part, however I don’t understand the compounded interest-example-1

1 Answer

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Compound interest is the starting amount x (1+ the interest rate as a decimal)^ the time in years=the final amount.

In your case, the equation will be $1000*(1+0.10)^how many years= the final amount.
User Djunforgetable
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