if i invest 2000 dollars at 4.25% interest,daily compound for 12 months, about how much return am i getting?

Question

im thinking to invest 2000 a month in C.D's for each twelve months of the year then possible at the end of each twelve months, spending the interest. and how would i be taxed on that?

Answer 1

The formula for computing future value is:

FV = V*(1+R)^N

where V is the present value, R is the one period interest rate and N is the number of periods to compound.

CDs and bank accounts use what is called "Actual/360" compounding. This means that you compound the actual number of days -- but to get the one period interest rate, you divide the annual rate by 360 (not 365).

In your case, the future value is:

2000*(1+4.25%/360)^365 = $2,088.06

In a leap year, the value is $2,088.31

In the US, interest is taxed at the ordinary tax rate (the same rate as your wages).

Answer 2

I don't know how to culculate, but I know where I can get a better return like 300% after 450 days. Dividends paid after every 30 days on principle starting with 10% x 3, 15% x 3, 20% x 3, 25% x 3 and 30% x 3.

So simply putting it, if you invest 2000 dollars, you'll get back 6000 dollars or even more if you follow the system.

Feel free to visit the website below to get better info.

Answer 3

Treasury ninety day notes at present yield 4.seventy 5% and the return is exempt from federal taxes. CDs or money industry debts are stable additionally, yet beware, the return from those is completely taxable. as quickly as you element in taxes, a CD or money industry account with 5.5% yield would purely provide you a real return of four% or perhaps much less (this relies upon on your tax bracket). Treasurys are genuinely the main secure investment you will come across. they are able to be offered direct from US treasury - see information superhighway internet site under; no midsection-adult males, no commissions, no expenses.

Answer 4

The Difference between Daily compound and Monthly compound is Trival, Hence I have calculated a monthly compound.
It comes to about 560$ Approx.
Principal + Interest-- Interest @ 4.25%
Month1 -- 2,000.00 -- 7.08
Month2 -- 4,007.08 -- 14.19
Month3 -- 6,021.28 -- 21.33
Month4-- 8,042.60 -- 28.48
Month5-- 10,071.08 -- 35.67
Month6-- 12,106.75 -- 42.88
Month7-- 14,149.63 -- 50.11
Month8-- 16,199.74 -- 57.37
Month9-- 18,257.12 -- 64.66
Month10-- 20,321.78 -- 71.97
Month11-- 22,393.75 -- 79.31
Month12-- 24,473.06 -- 86.68

Taxation : I am a Indian Resident, So I cant comment on US laws. But in India Interest on Securities (includes Banks) is exempt upto 15000 INR (Approx 320$). Anything beyond is taxable.