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$250,000 invested at 3% for 1 years

Future value

$257,500

Interest earned

$7,500

Total growth

3%

Investing $250,000 at 3% compounded annually for 1 years grows to $257,500. That's $7,500 of compound interest earned on your original $250,000.

FV = $250,000 × (1 + 3%)^1

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