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Money charged for borrowing money, as a percentage
Interest calculated only on the initial amount (principal)
Initial amount of money invested or borrowed
Final total amount after interest has been added
Percentage rate expressed as a decimal
Per year
A=P(1+in)A = P(1 + in)A=P(1+in)
Divide by 100 (e.g., 5% = 0.05)
P=A1+inP = \frac{A}{1 + in}P=1+inA
i=A−PPni = \frac{A - P}{Pn}i=PnA−P
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