Compounding interest v simple interest table

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In many cases, you can avoid rounding completely by how you enter things in your calculator or Excel. Certainly keeping that fourth decimal place wouldn’t have hurt. For our purposes, the answer we got by rounding to 0.00417, three significant digits, is close enough – $5 off of $4500 isn’t too bad. If you’re working in a bank, of course you wouldn’t round at all.

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