$20,000 invested at 5% for 1 years
Future value
$21,000
Interest earned
$1,000
Total growth
5%
Investing $20,000 at 5% compounded annually for 1 years grows to $21,000. That's $1,000 of compound interest earned on your original $20,000.
FV = $20,000 × (1 + 5%)^1
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