Future Worth of 1,000 Dollars One Time Investment in 20 Years

By Grace

Here is the future worth of 1,000 dollars if you invests it in 20 years. Are you looking for an information about calculating the future worth of one time (lump-sum) investment? If you invest $1,000 properly in an investment instruments that earns interest, how much would your $1,000 worth after 20 years. There are different investment types you can choose to grow your money, there is the stock market, a mutual fund, government bonds, time deposits or even a trust account in the banks.

Maybe you think, how can my $1,000 doubled in 3 years, you shouldn’t expect to double your $1,000 in 3 years if you just park it on your bank savings account. You should invest it.

The computation below has something to do for you if you want to invest your $1,000 in different types of investments. For an annual rate of return between 5% – 10%, your choice is bonds, while if the rate of return is between 10% – 15%, your investment choice is a combination of stocks and bonds and if you want to take risk because you want your money to earn 15% and above rate of return, choose to invest in the stock market.

Note: The future value of your $1,000 if invested properly will be calculated here. There is a compound interest effect in this computation. What is a compound interest? A compound interest means your profit will added to your main investment capital.

Example: Your investment capital is $1,000 and this year you earn $50, that means the following year, your total capital will be $1,050. And in the second year, your $1,050 will become 1,052.50. (5% compounding annually).

Future Worth of 1,000 Dollars One Time Investment in 20 Years

I computed the future value based on specific rate of return (5%, 8%, 10%, 12%, 15%, 18% and 23%). There is also a computation and a formula on how to double your $1,000 investment.

Initial Balance: $1,000
Compounding: Annually
Rate of Return: 5%
Years Invested: 20 Years
Future Value: $2,653.30

Initial Balance: $1,000
Compounding: Annually
Rate of Return: 8%
Years Invested: 20 Years
Future Value: $4,660.96

Initial Balance: $1,000
Compounding: Annually
Rate of Return: 10%
Years Invested: 20 Years
Future Value: $6,727.50

Initial Balance: $1,000
Compounding: Annually
Rate of Return: 12%
Years Invested: 20 Years
Future Value: $9,646.29

Initial Balance: $1,000
Compounding: Annually
Rate of Return: 15%
Years Invested: 20 Years
Future Value: $16,366.54

Initial Balance: $1,000
Compounding: Annually
Rate of Return: 18%
Years Invested: 20 Years
Future Value: $27,393.03

Initial Balance: $1,000
Compounding: Annually
Rate of Return: 23%
Years Invested: 20 Years
Future Value: $62,820.62

As you have noticed, the high rate of return, the more chances you can grow your money easily. However, those high rates of return are also associated with high risks. If you want to invest your money with highest rate of return and expecting high return on investments, you can invest directly in the stock market or choose mutual funds (stock funds/equity fund type), it means you are willing to take as high risk as you can. It is important to inform you, that there is a possible loss of capital in investing.

In investing, it is not how high or how low the rate of return, the important thing is you have to make sure that your money is invested properly and earn interest higher than inflation rate and make sure you invest your money according to your investment goal. For young people of course, they can take as high risk as they can, but for mid 50s or 60s they should choose low risk investment vehicle such as bonds or money market funds.

If you want to double your $1,000 in a specific period of time, you should use the “rule of 72” wherein, you only have to divide 72 from the numbers of years you want to double your money and the answer is the “rate of return”.

Example: $1,000 Doubled in 3 Years
Formula: 72 Divide by 3 Years
Rate of Return: 24%
Future Value of $1,000 after 3 years: $2,000
(Invest your money that will earn 24% annually, take advantage of the effect of compound interest).

Interesting Question: How to Make $1,000,000 in Investing?
Answer: Choose investment vehicle that will earn 18% annually within 20 years, make a one time investment (lump sum investment) amounting to $36,505.63. Stocks and mutual fund (equity fund type) can help you achieve this goal. Make sure you ask the financial experts on which stocks to buy and which mutual fund company is the best. Make sure the stock you choose is still stable and profitable after 20 years. Choose a reputable stock broker and ask them to fund your account and start buying a stocks.

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Money Quote and Saying for the Day:

The habit of managing your money is more important than the amount. – T Harv Eker, author of Secrets of the Millionaire Mind

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3 comments on “Future Worth of 1,000 Dollars One Time Investment in 20 Years

  1. Kenneth Morris says:

    You lost me on your very first paragraph.

    $1,000 @ 5% after two years is $1102.50 and not $1052.50

    If you want 14% plus per annum let me know. If you want a lot more than that, then definitely let me know.

  2. Kenneth Morris says:

    Invest in recycling and get a return of 14% every cycle. One cycle is 5 weeks.

    Recycle, clean up the planet and get rewarded.

  3. shahid virk says:

    Please provide your advice and detail info for saving $1000 every month for 10 years

    Thank you

    Shahid

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