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$10,000 invested at 4% for 1 years

Future value

$10,400

Interest earned

$400

Total growth

4%

Investing $10,000 at 4% compounded annually for 1 years grows to $10,400. That's $400 of compound interest earned on your original $10,000.

FV = $10,000 × (1 + 4%)^1

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