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$50,000 invested at 6% for 1 years

Future value

$53,000

Interest earned

$3,000

Total growth

6%

Investing $50,000 at 6% compounded annually for 1 years grows to $53,000. That's $3,000 of compound interest earned on your original $50,000.

FV = $50,000 × (1 + 6%)^1

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