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In order to obtain the future value of the principal amount

Compounding is the process that refers to converting the initial (principal) amount into a future value. In order to obtain the future value of the principal amount, you calculate what the value at the end of the time period will be assuming the initial investment will earn interest, which is reinvested and will earn additional interest in the future periods.

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Business Management: In order to obtain the future value of the principal amount

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Business Management: In order to obtain the future value of the principal amount

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