If I invest $1,000 at an 8.5% interest rate, how much money will I earn over 6 years? A. $5,100 B. $1,510 C. $510 D. $85 | Socratic (2024)

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If I invest $1,000 at an 8.5% interest rate, how much money will I earn over 6 years? A. $5,100 B. $1,510 C. $510 D. $85 | Socratic? ›

But we need to multiply 85 by 6 year which give us: 510. We now add 1,000 and 510 together which gives us 1,510.

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

If you deposit $1,000 into a high-yield savings account with a 4.5% annual percentage yield (APY), you'll earn a little more than $45 in interest after one year. With an APY of 5%, your interest earnings would be about $51 after one year.

$1,000 × 0.05 = $50 . That's it. You have just calculated your annual interest!

The result is the number of years, approximately, it'll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.

A sum of money (i.e. Principal) is $\$ 150$ which is invested at compounded interest (which means we have to use the above formula) at $8\% $ per annum for 17 years. Hence, if $\$ 150$ is invested at $8\% $ interest compounded continuously then its worth after 17 years will be $ \$ 555 $.

Hence, 10% of 1000 is 100.

For example, $1,000 put into an account with an annual interest rate of 5% would, in theory, earn $50 at the end of the year. However, if the rate is 5% with interest earned monthly, the APY would actually be 5.116%, earning you $1051.16 by the end of the first 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.

While starting with $1,000 may not sound like much in the grand scheme of things, you can grow your money over time and create a better financial future for yourself and your loved ones. In fact, it's never been cheaper or easier to be a new investor, and you have many great ways to start.

How to calculate 9.5 interest rate? ›

As you will see, the future value of $1,000 over 20 years can range from $1,485.95 to $190,049.64.

How can I double $5000 dollars? One way to potentially double $5,000 is by investing it in a 401(k) account, especially if your employer matches your contributions. For example, if you invest $5,000 and your employer offers to fully match at 100%, you could start with a total of $10,000 in your account.

The classic approach to doubling your money is investing in a diversified portfolio of stocks and bonds, which is likely the best option for most investors. Investing to double your money can be done safely over several years, but there's a greater risk of losing most or all your money when you're impatient.

How To Calculate Interest on a Savings Account. For example, if you have a balance of $1,000 earning 4.00% APY for five years, you would multiply 1,000 by 0.04 by 5 to reach a simple interest total of $200.

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

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.