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COMPOUND INTEREST CALCULATIONS Suppose that $1,000 …

COMPOUND INTEREST CALCULATIONS Suppose that $1,000 …

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COMPOUND INTEREST CALCULATIONS 3 gs2012 The formula used in reverse can be described as the present value. If the interest rate is r, then the value today of Pt at time t from now is given by P0 = Pt e - rt. We generally use continuous compounding because 1. The formula Pt = P0 e rt is very easy to use. 2.

  Used, Compounding, Calculation, Calculations 3

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