$50,000 invested at 5% for 1 years
Future value
$52,500
Interest earned
$2,500
Total growth
5%
Investing $50,000 at 5% compounded annually for 1 years grows to $52,500. That's $2,500 of compound interest earned on your original $50,000.
FV = $50,000 × (1 + 5%)^1
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