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

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

Depends on the compounding for the account. Why not just ask the bank?

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.

Quote:

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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

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You can use this interest calculator for free at:
Union Bank of California - CD Interest Earnings Calculator

Harvey

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

yearly yield = .4458x12= 5.35