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B.1 Simple and Compound Interest - Big Ideas Learning

Section B.1 Simple and Compound Interest A13 Compound interest is interest earned on the principal and on the previously earned interest. EXAMPLE 2 Calculating Compound Interest You deposit $400 in an account that earns 3.5% interest compounded annually. What is the account balance after 2 years? Interest for 1st year: I = Prt Write simple ...

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