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( Show Slide 5 (Compound Interest Exercise). ( Explain: “If you deposit $1,000 in an account that has daily compounding, at the end of the first day you would have $1,000.14. The next day, the interest is calculated based on the entire amount of your original deposit or $1,000 PLUS the previously earned interest; $1,000.14 rather than $1,000.” ................
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