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.

Expert-Verified Answer

The future value of a $10,000 investment at a 5% annual interest rate, compounded semiannually for five years, is $12,801 after rounding to the nearest dollar.

Answer & Explanation

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

Answer: If the Interest Rate is 10 Percent, then the Future Value in Two Years of $100 Today is $120.

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.

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

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.

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 formula is FV=PV(1+i)ⁿ, where the present value PV increases for each period into the future by a factor of 1 + i. The future value calculator uses multiple variables in the FV calculation: The present value sum. Number of time periods, typically years.

How much will it be worth in five years if you deposit $2000 in a 5 year certificate of deposit at 5.2% with quarterly compound ›

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

If you invest $10,000 today at 10% interest, how much will you have in 10 years? Summary: The future value of the investment of $10000 after 10 years at 10% will be $ 25940.

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%.

Hence, if a two-year savings account containing $1,000 pays a 6% interest rate compounded daily, it will grow to $1,127.49 at the end of two years.

For example, if you were to invest $1000 today at a 5% annual rate, you could use a future value calculation to determine that this investment would be worth $1628.89 in ten years.

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. Interest on this loan is payable at $500 annually, or $1,500 over the three-year loan term.

Future value formula for simple interest: A = P(1 + rt) where A is the future amount, P is the principal amount, r is the simple interest rate in decimal form, and t is the number of time periods that will have passed until the future date corresponding to A.

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

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

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.

How long will it take $1000 to double at 6 interest? ›

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.