An investment grows at 10% annually. If $5,000 is invested, how much is the investment worth after 3 years (compounded annually)?

Sun, 03 May 2026 23:09:45 +0000

Investing 10% Annually: How $5,000 Grows Over 3 Years with Compound Interest Investing is a powerful way to build wealth over time—and one of the most motivating factors is compound interest. When an investment grows at a steady rate, even small sums can multiply significantly. Take the example of investing $5,000 at a 10% annual return compounded annually. But how much will your investment be worth after three years? ### The Magic of Compound Interest Compound interest means that not only does your original investment grow, but the interest earned also begins to earn interest each year. This simple concept fuels exponential growth over time—especially with annual compounding.