2006-08-26 01:34:28 · 8 answers · asked by rkdcharles 1 in Business & Finance ➔ Investing
$26.25
2006-08-26 01:38:14 · answer #1 · answered by Dr Dee 7 · 1⤊ 0⤋
It depends on the exact method of compunding the interest (daily, weekly, monthly, etc.) and on the exact number of days used to calculate the six months (some banks use the actual number of days but the predominate method is 30 days per month and 360 per year if they do not do daily compounding).
5.25% is the annual rate, which would yield $52.50 if it was left in for a year. Six months, is roughly half a year, so roughly half of the annual interest, which is $26.25. The sight below will let you see how the compunding method will affect it (daily yields 26.60 in interest, annual yields 25.91)
2006-08-26 01:47:21 · answer #2 · answered by Steve R 3 · 0⤊ 0⤋
It's worked out as follows: 5.25% per annum on $1,000 = $52.50, so for six months it's half that = $26.25 and cheap interest too.
2006-08-26 01:44:32 · answer #3 · answered by ? 3 · 0⤊ 0⤋
about 26.25$ in a Cd 1000 for 6 months
2006-08-26 04:36:52 · answer #4 · answered by Hoa N 6 · 0⤊ 0⤋
CDs use what is called Actual/360 daycounting. That means that they compound every day -- but use a periodic rate of R/360 -- where R is the annual interest rate.
In your case, you need to know how many days are in the six month period. The formula is:
A = 1000 * (1+0.0525/360)^N
where A is the amount you will have in six months and N is the number of days. Subtract 1000 from this number to get the amount of interest. The following table gives the results:
Days in Six Months ............... Interest
============== ............... =========
... 181 ........................................ $26.75
... 182 ........................................ $26.90
... 183 ........................................ $27.04
2006-08-26 03:26:38 · answer #5 · answered by Ranto 7 · 0⤊ 0⤋
Is 5.25 the annual percentage rate (simple interest) or the annual percentage yield (compound interest)?
2006-08-26 01:44:10 · answer #6 · answered by fire_side_2003 5 · 0⤊ 0⤋
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2006-08-26 05:43:43 · answer #7 · answered by stock_trade_expert 3 · 0⤊ 0⤋
52.50
2006-08-26 01:40:11 · answer #8 · answered by b 4 · 0⤊ 0⤋