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Start with $100 and increase 10% each year for 5 years:

Start: $100
After 1 year: $100 + 10% = $110
After 2 years: $110 + 10% = $121
After 3 years: $121 + 10% = $133.10
After 4 years: $133.10 + 10% = $146.41
After 5 years: $146.41 + 10% = $161.05

The sum of annual percentage increases is 50 percent.

The total percentage increase is (61.05/100) = 61.05 percent.

That's why compound interest is so good for the saver,
and so bad for the credit-card addict.

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Q: Does the sum of annual average percentage increases equal the total percentage increase?
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