An investment grows at an annual compound interest rate of 5%. If the initial investment is $1000, what will be the value of the investment after 3 years?

Thu, 30 Apr 2026 10:08:39 +0000

**Why $1,000 Growing at 5% Annual Compound Interest Feels More Important Than Ever** Curious minds are increasingly drawn to the power of compounding—especially in a climate of rising costs and shifting financial priorities. The question, *“An investment grows at an annual compound interest rate of 5%. If the initial investment is $1000, what will be the value after 3 years?”* resonates widely, not just as a math problem, but as a gateway to understanding long-term wealth building. Small, consistent gains compound over time, making even modest sums grow significantly—particularly relevant amid inflation, evolving retirement planning, and digital investment platforms targeting everyday Americans. This isn’t just about numbers; it’s about participation in a financial rhythm that defines modern stability. --- ### The Growing Attention Behind a 5% Annual Compound Rate