If you invest $1000 today at an interest rate of 6% per annum, you can calculate the future value of that investment after one year using the formula:
Future Value = Principal Amount x (1 + Interest Rate)
In this case, the principal amount is $1000 and the interest rate is 0.06 (which is 6% expressed as a decimal). Plugging these values into the formula gives us:
Future Value = $1000 x (1 + 0.06)
Future Value = $1000 x 1.06
Future Value = $1060
Therefore, after one year, your $1000 investment at 6% interest would be worth $1060.
This means you would earn $60 in interest over the year. It’s a great way to grow your money by simply letting it sit and earn interest!