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Unformatted text preview: principal. For compound interest, you earn interest on previous years interest as well as on the principal. Compound interest is more common. 38 P = $750, n = 3 years, i = 8%, F = ? F = P (1 + i) n = $750 (1.08)3 = $750 (1.260)= $945 Using interest tables: F = $750 (F/P, 8%, 3) = $750 (1.360) = $945 311 Use P = F (P/F, i, n) = F (1 + i)n = 20,000 (1 + 0.07 )n . (a) n = 5, P = $14,260 (b) n = 10, P = $10,167 (c) n = 20, P = $5,168 (d) n = 50, P = $679...
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 Spring '11
 Kashayar

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