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$25,000 invested at 6% for 1 years

Future value

$26,500

Interest earned

$1,500

Total growth

6%

Investing $25,000 at 6% compounded annually for 1 years grows to $26,500. That's $1,500 of compound interest earned on your original $25,000.

FV = $25,000 × (1 + 6%)^1

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