Introduction to Interest
This video discusses how interest rates are applied. Note that a rate of return is usually expressed as a percentage (such as 4%), but when you need to apply it in a calculation, use it in decimal form (0.04 is the decimal form of 4%, and 0.10 is the decimal form of 10%). The same applies to the numerical expressions of interest rates.
Source: Khan Academy, https://www.youtube.com/watch?v=GtaoP0skPWc
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