$250,000 invested at 5% for 1 years
Future value
$262,500
Interest earned
$12,500
Total growth
5%
Investing $250,000 at 5% compounded annually for 1 years grows to $262,500. That's $12,500 of compound interest earned on your original $250,000.
FV = $250,000 × (1 + 5%)^1
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