An investment of $1,000 earns 5% annual interest, compounded annually. What will be the total value of the investment after 3 years?

Sat, 02 May 2026 15:23:57 +0000

**Why This Simple Investment Is Gaining Real Traction in the US (and What It Actually Delivers)** Ever wondered how a modest $1,000 can grow into more than just the original amount—even with just 5% annual interest, compounded every year? This question isn’t just about numbers; it’s about understanding one of the most sustainable ways to build long-term wealth in today’s markets. With rising interest rates and a renewed focus on accessible investing, more people are exploring simple, low-risk strategies that reward patience and time. What makes this investment compelling today is our shifting financial landscape. After years of fluctuating rates and volatile markets, many investors are seeking predictable returns without taking on excessive risk. The 5% compounded annual growth is a reliable benchmark—rooted in long-term compounding principles that reflect steady savings habits. ### The Mechanics: How Does $1,000 Grow at 5% Compounded Annually?