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$25,000 invested at 12% for 1 years

Future value

$28,000

Interest earned

$3,000

Total growth

12%

Investing $25,000 at 12% compounded annually for 1 years grows to $28,000. That's $3,000 of compound interest earned on your original $25,000.

FV = $25,000 × (1 + 12%)^1

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