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$5,000 invested at 12% for 3 years

Future value

$7,025

Interest earned

$2,025

Total growth

40.4928%

Investing $5,000 at 12% compounded annually for 3 years grows to $7,025. That's $2,025 of compound interest earned on your original $5,000.

FV = $5,000 × (1 + 12%)^3

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