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$1,000 invested at 12% for 1 years

Future value

$1,120

Interest earned

$120

Total growth

12%

Investing $1,000 at 12% compounded annually for 1 years grows to $1,120. That's $120 of compound interest earned on your original $1,000.

FV = $1,000 × (1 + 12%)^1

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