Want to invest 1,000 dollars? Do you know the future value if you invest 1,000 dollars in the stock market that earns at least 8 percent per years? A reader of InvestmentTotal.com asked a question about the future value of $1,000 if the money is invested in stocks within 20 years.
Stock market investing will become profitable if you will invest for a long period of time. Many stock market investors do invest their money for about 5 years, 10 years and 20 years. There are stock market investors who knows how to make a decent profit. Some are getting 8% return on investment and some are making 15% return.
If you invest $1,000 in the stock market within 20 years that earns an average of 8% per year, you will gain a total interest of $3,661. Your $1,000 investment capital will turn into $4,661.
Below is the Future Value of 1,000 Dollars Investment Capital
Initial Deposit: $1,000
Regular Deposit: $0.00
Deposit Frequency: $0.00
Compound Frequency: Annually
Interest Rate: 8%
Number of Years: 20 Years
$1,000 in 20 years: $4,661
Total Interest: $3,661
Invest $1,000 Now
If you invest $1,000 every year within 20 years, you will have a total investment of $20,000. If your investment earns at least 8% interest per year, your $1,000 per year investment will turn into $45,762.00.
Why 8% if you can get 10%, 15%, 20% or more? Stock market investing is very risky. And it will be more reasonable if an investor will get high returns. The risk you take as an investor should always be equal to the rewards you can get.
Maybe you will asked, how can I double my money in just few years?. To double your money, you need to earn a specific interest required in each corresponding date to when you want to double your capital.
Double Your 1,000 Dollars Investment
Number of Years: 3 Years
Required Interest Rate: 24% per Year
Number of Years: 5 Years
Required Interest Rate: 14.4% per Year
Number of Years: 7 Years
Required Interest Rate: 10.28% per Year
Number of Years: 8
Required Interest Rate: 9% per Year
Number of Years: 9
Required Interest Rate: 8% per Year
Number of Years: 10
Required Interest Rate: 7.2% per Year
Number of Years: 12
Required Interest Rate: 6% per Year
Invest 1,000 Dollars as Early as You Can
Because of the effect of compound interest, your money grow overtime. The return on investment will depend on how your stocks portfolio will perform. Take note that the tax, charges and fees are not included in the said calculation.
Now you know the future value of $1,000 if you invest it in high risk types of investment like stocks. Add useful information and other calculated/possible return on investment in the comment box below.