A bank account grows at an annual interest rate of 5%. If the initial deposit is $1,000, what is the balance after 3 years with compound interest?

Fri, 17 Apr 2026 08:40:38 +0000

**Why Interest Rates Matter—And How Your Bank Account Can Grow Over Time**
Anyone trying to build financial security often asks: What happens to a dollar when saved over years? With compound interest at 5%, even a $1,000 deposit doesn’t stay stagnant. Understanding this growth reveals how timing and patience work with money—offering a predictable way to strengthen financial futures without complex risk. **The Cultural Shift: Why Compound Interest Is Trending in the US**
In recent years, rising interest rates have reignited public curiosity about savings. After years of low returns, banking environments with 5% annual compound interest now stand out