What is the future value of $10,000 on deposit for 5 years at 6% simple interest? (2024)

FAQs

What is the future value of $10,000 on deposit for 5 years at 6% simple interest? ›

The future value of $10,000 with 6 % interest after 5 years at simple interest will be $ 13,000.

An investment of $10000 today invested at 6% for five years at simple interest will be $13,000.

The future value of a $10,000 investment at a 5% annual interest rate compounded semiannually for five years will be approximately $12,800.84 using the compound interest formula.

Final answer: The future value of $1,000 a year for five years at a 6% rate of interest is $1,338.23.

Answer & Explanation

The future value of $10,000 on deposit for 2 years at 6% simple interest is $11,200.

The future value of $10,000 with 6 % interest after 5 years at simple interest will be $ 13,000.

If, Rs.10000 will be deposited for 5 years at a Simple interest rate of 8% p.a, so the maturity amount will be Rs.140,000. If we apply the same condition only the interest will be compounded with yearly frequency, so the maturity amount will be Rs.1,46,932.

Compounded Annual Interest

Using the above example, the same $1,000 invested for five years in a savings account with a 10% compounding interest rate would have an FV of $1,000 × [(1 + 0.10)⁵], or $1,610.51.

Answer and Explanation:

F V = 10000 e 0.07 ( 5 ) = $ 14 , 190.68 .

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.

What will $10 000 be worth in 30 years? ›

Over the years, that money can really add up: If you kept that money in a retirement account over 30 years and earned that average 6% return, for example, your $10,000 would grow to more than $57,000.

Assuming an annual return rate of 7%, investing $50,000 for 20 years can lead to a substantial increase in wealth. If you invest the money in a diversified portfolio of stocks, bonds, and other securities, you could potentially earn a return of $159,411.11 after 20 years.

Answer and Explanation: The future value of the deposit will be worth $2,589.52 in five years.

Using the classic rule of 72, an investor can estimate how long it takes to double their money. At 7% annual returns, an investor would see $10,000 grow to $20,000 in about a decade by taking 72 and dividing it by 7%, the rate of return.

Expert-Verified Answer

It will take approximately 11.51 years for an initial investment of $10,000 to grow to $25,000 at a continuous compounding interest rate of 6%.

Simple Interest Formula

Thus, if simple interest is charged at 5% on a $10,000 loan that is taken out for three years, then the total amount of interest payable by the borrower is calculated as $10,000 x 0.05 x 3 = $1,500.