About the power of compounding interest

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Create a real-world scenario of how you might use the PV or FV for a dollar or annuity and share with the class. Do the calculation. For example, I need to save $______ for my child’s education in 5 years. To do this, at a rate of ____%, I would need to _____________________. This is only one example – you could calculate how much to save for a car, house, retirement, etc. What does this exercise show you about the power of compounding interest?

Reference no: EM13977699

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