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$5,000 invested at 12% for 1 years

Future value

$5,600

Interest earned

$600

Total growth

12%

Investing $5,000 at 12% compounded annually for 1 years grows to $5,600. That's $600 of compound interest earned on your original $5,000.

FV = $5,000 × (1 + 12%)^1

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