The compound interest on $1,000 at 5% per year compounded annually for 3 years is how much?

Thu, 16 Apr 2026 05:03:09 +0000

What happens when $1,000 grows at 5% interest, compounded yearly for three years?
The compound interest on $1,000 at 5% per year compounded annually for 3 years is $1,157.63. This figure reflects more than just a simple gain—it shows the power of time and steady growth in a familiar financial context. As more Americans turn to long-term planning amid shifting economic conditions, this calculation sparks quiet but growing interest. Investors, financial planners, and everyday users are curious: how does this amount build, and what does it mean for real-world money management? ### Why Is This Calculation Gaining Attention in the U.S.? In recent months, rising financial awareness has fueled interest in how even modest sums can grow over time. With inflation pressing on purchasing power and everyday savings feeling less impactful, compound interest offers a clear path to seeing real returns on patience. The specific scenario of $1,000 at 5% annual compounding serves as a relatable entry point—accessible, easy to visualize, and relevant across age groups and income levels.