$ 1,000 today invested with 6% interest would be worth _______ in a year from now on [resolved] (2024)

FAQs

$ 1,000 today invested with 6% interest would be worth _______ in a year from now on [resolved]? ›

Answer: $1,000 invested today at 6% interest would be worth $1,060 one year from now.

So, if the interest rate is 6%, you would divide 72 by 6 to get 12. This means that the investment will take about 12 years to double with a 6% fixed annual interest rate. This calculator flips the 72 rule and shows what interest rate you would need to double your investment in a set number of years.

Answer. $1000 compounded daily at a 6% interest rate will grow to approximately $1127.49 after 2 years using the compound interest formula. To determine how much $1000 is worth at the end of 2 years with an interest rate of 6% compounded daily, we need to use the compound interest formula which is A = P(1 + r/n)^(nt).

Summary: The future value of $500 one year from today if the interest rate is 6 percent is $530.

Thus, the interest at the end of the one year is Rs. 500.

Answer: $1,000 invested today at 6% interest would be worth $1,060 one year from now. Let us solve this step by step.

Answer and Explanation:

The answer is: 12 years.

Answer and Explanation: The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.

The future value of $10,000 on deposit for 2 years at 6% simple interest is $11200.

You simply take 72 and divide it by the interest rate number. So, if the interest rate is 6%, you would divide 72 by 6 to get 12. This means that the investment will take about 12 years to double with a 6% fixed annual interest rate.

What is the future value of $1000 after 5 years at 10% per year? ›

Simple Annual Interest

If a $1,000 investment is held for five years in a savings account with 10% simple interest paid annually, the FV of the $1,000 equals $1,000 × [1 + (0.10 x 5)], or $1,500.

Compounding investment returns

If you invested $10,000 in a mutual fund and the fund earned a 6% return for the year, it means you gained $600, and your investment would be worth $10,600.

Simple Interest Examples

You want to know your total interest payment for the entire loan. To start, you'd multiply your principal by your annual interest rate, or $10,000 × 0.05 = $500.

For example, let's say you invest $10,000 in a simple-interest account that earns 5%. You'll earn an estimated $500 in interest and your account will be worth $10,500 after a year.

$1,000 at 6% interest for 3 years: P = $1,000 r = 6% = 0.06 (as a decimal) n = 1 (compounded annually) t = 3 Using the formula: A = $1,000(1 + 0.06/1)^(1*3) = $1,000(1 + 0.06)^3 = $1,000(1.06)^3 = $1,000(1.191016) ≈ $1,191.02 The compound interest for this problem is approximately $191.02.

To find out how many years it will take your investment to double, you can take 72 divided by your annual interest rate. For instance, if your savings account has an annual interest rate of 5%, you can divide 72 by 5 and assume it'll take roughly 14.4 years to double your investment.

It's called the “rule of 72”. Divide 72 by the interest rate. The result is how many years it takes to double an amount (any amount) of money. 72 / 6 = 12.

It would take approximately 11 years to double a $1,000 investment that pays 6.5% annual interest rate and compounded on a monthly basis.