What will $1000 at 0.10% interest rate be worth in 20 years?
Interest is earned monthly and compounded two times per year.
- BillLv 44 weeks ago
I suspect you have the decimal point in the wrong place in your question. Try again?
- MR ANFIELD ACESLv 41 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 !
- roderick_youngLv 71 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.
- D.E.B.S.Lv 71 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.)
- What do you think of the answers? You can sign in to give your opinion on the answer.
- John AldenLv 71 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.
- Anonymous1 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%.
- Wayne ZLv 71 month ago