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January 20, 2023

Compound interest O is calculated only on the initial principal. O is calculated only on the interest that’s earned to date on the principal. O assumes that unpaid interest is not

Compound interest
O is calculated only on the initial principal.
O is calculated only on the interest that’s earned to date on the principal.
O assumes that unpaid interest is not yet earned.
• uses the accumulated balance at each year end to calculate interest in the following year.

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