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$20,000 invested at 3% for 1 years

Future value

$20,600

Interest earned

$600

Total growth

3%

Investing $20,000 at 3% compounded annually for 1 years grows to $20,600. That's $600 of compound interest earned on your original $20,000.

FV = $20,000 × (1 + 3%)^1

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