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Compound interest also exists in 'banking' world, especially amortisation and annuities. Conceptually, the unpaid loan/not-yet-withdrawn deposit will be affected by the interest rate periodically (as you also pay regularly). The formula is NOT provided and NOT required on the exam. You are expected to solve them with Financial Solver technology/calculator! Useful notes: Real (investment) value is the present value of post-investment through 'reversing' inflation. Hence, you need to bring it to the future with inflation rate (as the interest) to get the post-investment future value! On examination, write down your inputs on Financial Solver prior finding the unknown variable. Write P/Y first then N (multiply "n" years with number in P/Y) Write C/Y first then I% (no need to multiply, keep in annual) For math tutoring services, you can reach me here: https://linktr.ee/tutorio.math & feel free to drop any math questions down below!