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10 cards from this deck
Interest on principal AND on previously earned interest
FV=PV(1+r)nFV = PV(1 + r)^nFV=PV(1+r)n
Future value (final amount)
Present value (initial amount)
Interest rate per compounding period (as decimal)
Number of compounding periods
I=FV−PVI = FV - PVI=FV−PV
Divide annual rate by 12, multiply years by 12
PV=FV(1+r)nPV = \frac{FV}{(1 + r)^n}PV=(1+r)nFV
Exponential curve that gets steeper
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