Compound Interest on $50,000 at 7% for 1 Years

$50,000 invested at 7% annual compound interest for 1 years grows to $53,500. That is $3,500 in interest earned on top of your original $50,000 — a 7.0% total return. Compound interest is called the "eighth wonder of the world" because interest earns interest, creating exponential rather than linear growth over time.

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