Investing at 10% per year

Case B: Investing $1000 at 10% per year

Suppose you invest $1000 today at a 10% rate of return. Using the equation above, we can calculate the future value of this one time investment.


FV = ($1,000) (1.10)n where n = the number of years


After 10 years, this single $1,000 investment will be worth:

FV = ($1,000) (1.10)10 = $2,594


After 20 years, this single $1,000 investment will be worth:

FV = ($1,000) (1.10)20 = $6,727


After 30 years, this single $1,000 investment will be worth:

FV = ($1,000) (1.10)30 = $17,449


After 40 years, this single $1,000 investment will be worth:

FV = ($1,000) (1.10)40 = $45,259


After 50 years, this single $1,000 investment will be worth:

FV = ($1,000) (1.10)50 = $117,391