Compounding formula related to the value of money

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What is compounding as it relates to time value of money? What is the formula for compounding? Provide some specific healthcare-related examples in which you would utilize this formula. 

Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

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