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$75,000 invested at 5% for 1 years

Future value

$78,750

Interest earned

$3,750

Total growth

5%

Investing $75,000 at 5% compounded annually for 1 years grows to $78,750. That's $3,750 of compound interest earned on your original $75,000.

FV = $75,000 × (1 + 5%)^1

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