if i put 100,000 in the bank and invest it what would happen?

Question

i dont really know about this stuff but i live in Michigan and how much money would i get a year in it or a month or w/e

well what about intrest

Answer 1

Sounds to me like you would lose your shirt if you invest it.

But if you put it in the bank, as you propose, you would earn interest.

Investing and banking are two seaparate things.

Answer 2

I'm not sure whether you intend to ask how compound interest works or how investing works. For the latter, find someone in the financial industry to help you. For the former, the general formula is A = P(1 + r/n)^(nt), where P = principal, t = time in years, r = nominal rate of compound interest, and n = number of times compounded per year. With compound interest, your money will grow. At the start, its growth won't seem like anything wonderful; you have to wait. Its growth "takes off" after a while. If you've ever seen the graph of an exponential function, that's what it's going to look like: pretty flat for a while, but eventually growing fast. If you compound $100,000 at 5% interest compounded quarterly (5% = 0.05), then after one year you'll have $105,094.53. After ten years you'll have $164,361.94. After twenty years, you'll have $270,148.49. After thirty years, you'll have $444,021.31. Of course, your money's growth will depend on the values of r and n you actually have. Even if you're just putting your money into a savings account, be sure to get the highest rate possible; a tiny difference in r can end up making a big difference in the amount you wind up with. (Just as with a mortgage or a car loan, a tiny difference in the rate can make a big difference in how much you end up paying.)

Keith

Answer 3

Putting money in the bank and investing it are two different things. Sure the money will earn interest in the bank, but not as much as a good investment. Your return depends on the bank's rates; check with them. Investing is a whole 'nother ball game. You have to read up, study the market, do your homework. You could utilize a broker, but that involved research as well. I suppose you could open an IRA (Roth) that would earn interest. But just putting in the bank and letting it earn interest would't bring you as much of a return as a good investment in a stock or mutual fund.

Answer 4

If you put the money in a bank, you're not investing it. You're putting it in a "safe" place. To invest money, you have to use it to acquire something like real estate, art, or stock which has a reasonable expectation of increasing in value. Before you invest, you do need to put the money in the bank and leave it alone. Then you need to read about investing and the various ways to invest. You need to decide on what sounds and feels right for you, then go with that.

Right now, one of the best places to invest I know of is an investment fund called Vanguard which has been earning from fifteen to twenty-five percent, I believe, annually. You might ask a stock broker to check into it for you and get details about its performance.

Good luck!

Answer 5

stocks or (stock) mutual funds would average a 9% return a year, and Bonds would average 4-5% per year.

if investing is new to you and you have $100K, go to vanguard.com and open an account and put the money into their STAR mutual fund. this fund invests in all types of stock (small cal, mid cap and large cap), bonds (corporate and government), as well as international stocks and bonds.

do not invest all the money at once!!! dump the money into a money market fund (earns about 3%) and then call vanguard and tell them you want to invest $5K every month into the STAR fund (they will automatically shift it out of the money market fund) over the next 20 months. you do this in case the market takes a big hit in the next couple of months (your investment may go down, but you buy cheap!)

Answer 6

If this REALLY is your situation you would be speaking with a bank consultant to obtain this information as it does vary depending on the bank and specific investments made.

Answer 7

it depends on what you are looking to do.
simply putting it into a savings account will only get you the interest, which isnt much. speaking with an investor to try maybe a CD or another more aggressive investment mayb yield higher rewards, but theres more risk invovled.
best bet would be to speak with a financial advisor/planner.

Answer 8

Depends on the account.
Standard savings at 3%apy round 3k end of year
Money Market at 5%apy round 5k but MM's can lose money!
Safest thing with 100k is CDs.

Answer 9

it all depends on what you invest it in...You may make a million off your initial investment, or you could lose every dime you invest....investmernt banking is almost as risky as gambling. You need to find someone you really trust to help you.

Answer 10

Invest in a low cost / budget mobile telecom company, like "EasyJet" (Europe) dit it with the airline company.