Ask Experts Questions for FREE Help !
Ask
    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: 4,926, 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
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Controlling interest [ 4 Answers ]

Good morning, I have established a corporation as a parent company. What I would like to do is now establish a real estate investing company up under this corporation as an LLC. I intend on going into business with another person who does carpentry type work. If we have a business fall out, with...

No Interest in Sex [ 8 Answers ]

Can someone please guide me. My husband and I have been together for 15 years now and recently, well for quite a while, I have had absolutley no interest in sex. I love my husband and he treats me well, but I am just not interested. I am a non-traditional student, and after being in college all...

Tuition interest h1b [ 1 Answers ]

Hi Atlanta Tax expert, I have been in the US on an F1b since 1998, I changed status from f1 to h1b in July 2005. Given that my 5 years as a nonresident on f1 ended in 2003, I am filing 1040. I have paid tuition, and also interest on student loans in 2005. The interest was paid to a bank in...

Taxable Interest (f1 To H1b In Oct) [ 3 Answers ]

Dear Atlanta Expert and other friends, Thank you for this website and your contribution. I have question regarding taxable interest. On October 1, 2005, my status was change from F1 to H1B, As per the sticky note, I should be filling the 1040 NR + 8843. My question is about taxable...

Please help with Interest Rate Question [ 1 Answers ]

If a situation involves a 10% interest rate compounded semiannually for 10 years, what interest rate and number of periods would be used to compute the present value? Thanks

View more questions Search