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You invest 5000 in a Certificate of Deposit and receive annual interest of 8 percent for 7 years How much interest will investment earn during this period?
Wiki User
∙ 14y ago
Certificates of Deposit (CDs) may allow interest to be paid out annually. Alternatively, the annual interest can be accumulated and compounded until maturity. The choice must be made at the point of taking out the CD.
Annual payment of interest: On each anniversary date the annual interest is paid by transferring it to your current account or to a savings account etc of your choice. This means there is no compounding of interest, year on year.
Calculation:
5000 at 8 percent is 400. You will receive 400 each year, for 7 years, a total of 2,800.
Interest compounded and paid at maturity:
Statement of end of year values including interest, at end of year:
- 5400.00
- 5,832.00
- 6,298.56
- 6,802.44
- 7,346.64
- 7,934.37
- 8,569.12
At the end of year 7 the total payout will be 8,569.12 i.e. 5000 initial deposit + 3,569.12 total interest earned.
NOTE: These calculations assume that no tax is deducted at source.
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Wiki User
∙ 14y ago
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What amount will you lose for early withdrawal on a 20000 6 percent Certificate of Deposit?
It depends on the terms of the deposit and how early you withdraw.
If you deposit 10000 on 3 percent interest what would it be weekly?
$5.77
What is 15 percent interest on 1000?
The annual interest is 150 Add this to your originial investment and you have 1,150
How long does a 4000 investment take to earn 720 interest if the interest rate is 6 percent per year?
3
How long will a 9000 investment take to earn 180 interest at an annual interest rate of 8 percent?
3 months
Ryan was 8 when his parents invested 4000 in a certificate of deposit that pays 6 percent If Ryan leaves the account alone until the investment doubles how old will he be Assume that the interest?
20, assuming annual compound interest, 24 if simple interest.
Jerry invested 14000 in a certificate of deposit at 5 percent he also put 2500 in a savings account at 3 percent how much interest will he earn after?
775
Jerry invested 14000 in a certificate of deposit at 5 percent He also put 2500 in a savings account at 3 percent How much interest will he earn after one year?
$775
Sharon invested 4000 in a certificate of deposit at 5 percent She also put 500 in a savings account at 3 percent How much interest will she earn after one year?
215
Jackie invested 12000 in a certificate of deposit at 6 percent She also put 3000 in a savings account at 3 percent How much interest will she earn after one year?
$810
Are there high interest rates on certificate of deposit?
Interest rates on CDs are generally between 1 and 2 percent, so not really. If you want high returns, you'll need to look into investments, which can be risky.
Jo wants to put some money in a 15th month certificate of deposit accounts that pay 5 percent annual interest He wants the account to earn 200 in interest. How much money should he put in the account?
Amount to Deposit (P) = ? Time (N) = 15 months or 1.25 years Rate of Interest (R) = 5 Interest Earned = 200 Formula for Interest = P * N * R / 100 Rearranging the formula we get: P = Interest * 100 / N * R = (200 * 100) / 1.25 * 5 = 20000 / 6.25 = 3200 If they want to earn 200 interest they must deposit 3200 as the amount for the certificate of deposit.
What amount will you lose for early withdrawal on a 20000 6 percent Certificate of Deposit?
It depends on the terms of the deposit and how early you withdraw.
What is a sentence with 'interest' in it?
The saver lost interest in the investment once the interest rate fell to 0.5 percent.
If you deposit 10000 on 3 percent interest what would it be weekly?
$5.77
What return can you expect on a 1 million dollar investment?
In investments and finance there is no guarantee of a positive return on any investment. Even in a low risk certificate of deposit, for example, the interest maybe be several points at most. Even here the return is not guaranteed as the FDIC will only insure up to 250,000 per account. If the bank was to became insolvent, it would represent a 75 percent loss, minus any interest accrued. Lastly, the effects of inflation will further devalue any gains made by interest on the initial capital.
What is 15 percent interest on 1000?
The annual interest is 150 Add this to your originial investment and you have 1,150
