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Community: Investing Wiki

Term Of The Hour

calculate a lump: Original post by Stephanie Ellen of Demand Media When you invest a lump sum in savings, the interest on the lump sum is compounded. For example, if you invested $100 at 4 percent interest, after one year you would earn interest on $100 and the second year you would earn interest on $104. The formula to calculate compound interest for a lump sum is A = P (1+r/n)^nt where A is future value, P is…

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