To calculate the value of $1,005,118 with a 7% growth rate over the next 5 years, we can use the compound interest formula:

$A = P(1 + r)^t$

Where:

• $A$ is the amount after time $t$,
• $P$ is the principal amount ($1,005,118),
• $r$ is the growth rate per period (7% or 0.07),
• $t$ is the time in years (5 years).

Now, plugging in the values:

$A = 1,005,118 \times (1 + 0.07)^5$ $A = 1,005,118 \times (1.07)^5$ $A = 1,005,118 \times 1.402551$ $A \approx 1,411,437.69$

So, after 5 years at a 7% growth rate, the value will be approximately $1,411,437.69.

Would you like more details on how to calculate growth rates, or do you have any further questions?

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Here are a few questions to explore further:

1. How do you calculate the compound interest formula when the growth rate is applied annually versus quarterly?
2. What happens to the final value if the growth rate is compounded more frequently (monthly, weekly)?
3. How would you calculate the future value if the growth rate changes over time?
4. What are some real-world applications of compound growth?
5. How does inflation impact the future value of an investment?

Tip: Compound growth is very powerful. Even small percentage increases can significantly affect the total over many years.