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- Robert LLv 71 decade agoFavorite Answer
One way is they use algebra to calculate compound interest.
Amount = Principal * (1+i)^n
where i is the interest rate and n is the number of years.
Another way is they use this formula to create balance sheets.
Assets = Liabilities + Owner's Equity
The last way I'll mention is how they calculate how much you owe them:
Fee = (number of hours worked) X (cost / hour)
.
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