calculating simple interest

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					                                  calculating simple interest

                        future cost of $1.00:
                        s   After one year at 5% interest:
                            s   Example:

                                $1.00
                                 x .05
                                .0500

                                $1.00 + .05 = $1.05


                        s   After two years at 5% interest:
                            s   Example:

                                $1.05
                                 x .05
                                .0525

                                $1.05 + .05 = $1.10


                        s   After three years at 5% interest:
                            s   Example:

                                $1.10
                                 x .05
                                .0550

                                $1.10 + .06 = $1.16


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