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$10,000 invested at 12% for 1 years

Future value

$11,200

Interest earned

$1,200

Total growth

12%

Investing $10,000 at 12% compounded annually for 1 years grows to $11,200. That's $1,200 of compound interest earned on your original $10,000.

FV = $10,000 × (1 + 12%)^1

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