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Compound Interest
Definition
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Formula
Compound Interest
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1:06
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DataMListic
Euler's Number Is Just Compound Interest
Put one dollar in a bank paying 100% interest and after a year it doubles to two dollars. But compound more often and the payout climbs: twice a year gives 2.25, monthly about 2.61, daily 2.71, and every second barely moves past that. The sequence one plus one over n, all to the power n, keeps rising but slams into a wall as the gains shrink to ...
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