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Exercise

Compound interest

As you saw in the previous exercise, both time and the rate of return are very important variables when forecasting the future value of an investment.

Another important variable is the number of compounding periods, which can greatly affect compounded returns over time.

Instructions 1/3
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  • Calculate the value of a $100 investment which grows at a rate of 6% per year for 30 years in a row compounded once per year and assign it to investment_1.