2006-09-20 13:20:23 · 5 answers · asked by zap 5 in Business & Finance ➔ Personal Finance
GIC with my company, minimum 10,000CAD @ 8% = 800/year its around66.67/month in interest income.
But if in high rate saving account like
1) PC Financial 4% on balance over 1000CAD
2) HSBC 3.45% on all balance
3) ING 3.45% on all balance
you need approx 12000.
40/month * 12 months / interest in decimal will get you the total, non compound principle requirement.
2006-09-20 16:46:46 · answer #1 · answered by davidkwankwokfai 3 · 0⤊ 0⤋
Depends on the interest rate.
If you had 10 000 CDN @ 4.80 %, then you would be making 40.00 CDN per month. (10 000 x 0.48 = 480 480/ 12 months = 40.00 CDN)
The higher the interest rate, the lower the principle required.
The higher the principle, the lower the interest rate required.
As you can see, the kind of currency used does not make a difference. Fill in any units - the answer is the same.
;-)
2006-09-20 13:31:42 · answer #2 · answered by WikiJo 6 · 0⤊ 0⤋
You would need to put about 10000 in at 5% interest rate to earn $40 a month. The higher the rate, the lower the amount needed would be.
2006-09-20 13:32:41 · answer #3 · answered by Bob 2 · 0⤊ 0⤋
Play with the interest rates that are available. $40 monthly is $480 is per year. $9000. at 5% gets you $450 per year -+
2006-09-20 13:30:38 · answer #4 · answered by justwondering 6 · 0⤊ 0⤋
You cannot answer that without the interest rate.
Once you have the interest rate, divide 40 by the interest rate..that will be your answer.
ex: $40/.10 = $400 assuming the interest rate is 10%.
2006-09-20 13:25:38 · answer #5 · answered by escapegrl1 3 · 0⤊ 0⤋