An investor deposits $10,000 into a savings account with an annual interest rate of 5%, compounded annually. How much will the investment be worth after 15 years?

Sun, 03 May 2026 13:08:22 +0000

**How Long Will $10,000 Grow at 5% Compound Annual Interest Over 15 Years?**
An investor deposits $10,000 into a savings account offering a 5% annual interest rate, compounded each year. This question reflects growing curiosity among U.S. savers about how basic financial tools can help build long-term wealth. With rising interest rates in recent years, more people are studying fundamentals to make informed decisions—especially when preserving purchasing power over time. The compound interest formula is simple but powerful: A = P(1 + r)^t
Where:
- A = final amount
- P = principal ($10,000)
- r = annual interest rate (5% = 0.05)
- t = time in years (15) Using this, the account grows not just on the initial deposit, but on accumulated interest each year—meaning earnings snowball over time. After 15 years, this investment reaches approximately $20,789. ---