Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 month ago

What will $1000 at 0.10% interest rate be worth in 20 years?

Update:

Interest is earned monthly and compounded two times per year. 

7 Answers

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  • Bill
    Lv 4
    1 month ago

    I suspect you have the decimal point in the wrong place in your question.  Try again?

  • 1 month ago

    what sort of interest ? compound interest ? or the other one ?

    have you factored in inflation here ?

    so many questions so little time, main thing is I got the points - gotta go now, bye !

    lol

  • 1 month ago

    0.10% is such a low interest rate, that we can ignore compounding.  That's about $1 a year, so $1000 principal + $20 interest = $1020.

    Given inflation, pretty much all savings accounts lose value over time, just so you know.

  • 1 month ago

    In 20 years, earning .1% interest will certainly result in your balance being 'worth' much less because of inflation.  You'd need to have an inflation estimate factored in to determine much the value has gone down.

    (There is a separate question you didn't ask which is how much money would you have at the end of 20 years. That is much different than how much it would be worth.)

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  • 1 month ago

    I think you would want it based on 10% interest. 0.10% is bubkis.

    This is for 10%:

    At the end of 20 years, your savings will have grown to $6,727.

    You will have earned in $5,727 in interest.

  • Anonymous
    1 month ago

    How often compounded . . . daily, weekly,monthly,annually?

    .

    ADDED:  since you didn't respond,  "Wayne Z" is correct if interest paid annually as you state:  $1020.19 . . . .would be more if compound more frequently.

    Another area of ambiguity:  until recently .10% meant one-tenth of a percent or .001 . . . . now some are expressing 1% as .10% -- which is wrong -- 1% is .01 not .10%.

  • 1 month ago

    $1,020.19.

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