2006-09-08 16:16:01 · 6 answers · asked by nybergstyle 1 in Business & Finance ➔ Investing
Not very much. You get more for opening a new acct with a bank! (or just about anywhere else)
Anyways, the formula is $1000 X (1+0.02)^(7/12) = total incl interest = 1011.62
Thus, you'd earn a whopping $11.62 interest!
2006-09-08 16:20:53 · answer #1 · answered by Yada Yada Yada 7 · 0⤊ 0⤋
I agree with 11.66 or 11.67 depending on how you round but the reality is that you lost $5.83 of buying power at the end of the seven months because the 3% national average inflation not only eat up the $11.66 but took an additional $5.83 from your initial investment of $1000.00 leaving you with the purchasing power of only $994.17 (unless of course we're are talking about gas - in which case you might be able to fill your gas tank a couple times with the money you will have 7 months from now)
2006-09-08 17:19:47 · answer #2 · answered by do it all web.com 1 · 0⤊ 0⤋
about 14$
2006-09-08 17:03:02 · answer #3 · answered by Hoa N 6 · 0⤊ 0⤋
If it's compounded monthly
$1000*(1+.02/12)^7 ~ $1011.73
2006-09-08 16:23:37 · answer #4 · answered by Andy S 6 · 0⤊ 0⤋
You would do better with either a regular savings account at a credit union or buying t-bills from http://www.treasurydirect.gov.
2006-09-08 16:21:33 · answer #5 · answered by Plasmapuppy 7 · 0⤊ 0⤋
$11.66 you gave no info. so it wasn't compounded straight interest.
2006-09-08 16:32:04 · answer #6 · answered by moonwalker 3 · 0⤊ 0⤋