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.

What is the future value of $10,000 on deposit for 5 years at 6% simple interest? Hence the required future value is $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 and Explanation: The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.

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.

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 & Explanation

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

Today's savings account rates aren't the norm, so let's assume that keeping your $10,000 in cash results in an average annual 2% return over 30 years. In that case, you're growing your $10,000 into about $18,000.

Answer and Explanation:

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

How much will $50 000 be worth in 20 years? ›

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.

Final answer:

It will take approximately 15.27 years to increase the $2,200 investment to $10,000 at an annual interest rate of 6.5%.

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.

total amount = amount + previous year intrest. total amount = 10900. which amounts to = 1090. hence, total 10000 amounts to 11,990 (10,900+1090).

The Rule of 72 is focused on compounding interest that compounds annually. For simple interest, you'd simply divide 1 by the interest rate expressed as a decimal. If you had $100 with a 10 percent simple interest rate with no compounding, you'd divide 1 by 0.1, yielding a doubling rate of 10 years.

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.

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

For example, if you take out a five-year loan for $20,000 and the interest rate on the loan is 5 percent, the simple interest formula would be $20,000 x .05 x 5 = $5,000 in interest.