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    harveymasons's Avatar
    harveymasons Posts: 10, Reputation: 1
    New Member
     
    #1

    Jul 22, 2006, 04:47 AM
    question on cd interest
    How could I figure out the monthly yied(interest on my investment) on say a 9 or 6 month cd that is paying 5.35% Lets say for a 25k investment

    Am I correct by doing this: 25,000 x .0535 = 1337.50 1337.50/12= 111.45 a month income??

    thanks in advance,
    harvey
    walt17's Avatar
    walt17 Posts: 335, Reputation: 28
    Full Member
     
    #2

    Jul 22, 2006, 12:48 PM
    Harvey,
    Your calculation assumes that you held the CD for a year.
    Divide the annual percentage rate (APR) by 12 giving you a monthly rate. Multiply the investment by monthly rate for a monthly yield. All CDs I have seen quoted provide an APR. This would give you a good estimate.

    Walt
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #3

    Jul 22, 2006, 06:08 PM
    Depends on the compounding for the account. Why not just ask the bank?
    fredg's Avatar
    fredg Posts: 4,928, Reputation: 674
    Ultra Member
     
    #4

    Jul 23, 2006, 08:53 AM
    Hi, harvey,
    I have a couple of CD's, but am not a professional in calculating any returns.
    Your best bet is to go to a bank, and ask.
    Any calculations you make may or may not be correct. The percentages can be confusing. Please ask at a bank.
    Best of luck.
    jaggr12's Avatar
    jaggr12 Posts: 1, Reputation: 1
    New Member
     
    #5

    Aug 9, 2007, 03:22 PM
    Quote Originally Posted by harveymasons
    How could I figure out the monthly yied(interest on my investment) on say a 9 or 6 month cd that is paying 5.35% Lets say for a 25k investment

    Am I correct by doing this: 25,000 x .0535 = 1337.50 1337.50/12= 111.45 a month income???

    thx in advance,
    harvey
    You can use this interest calculator for free at:
    Union Bank of California - CD Interest Earnings Calculator
    jpatel2's Avatar
    jpatel2 Posts: 1, Reputation: 1
    New Member
     
    #6

    Aug 30, 2007, 01:44 PM
    Harvey

    Your monthly yeold will be 111.45x100/25000 =0.4458 %

    yearly yield = .4458x12= 5.35

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