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Compound interest refers to interest-bearing accounts, where you might earn, say, 5% on your $1,000 account one year, adding $50 and bringing your account value to $1,050, and then 5% the next ...

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Calculations and Example of Compound Return For example, suppose you started with an initial investment of $1,000. If you multiply 1,000 by 1.1 five times, that is, $1,000 x (1.1) 5, you will end ...

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