How much interest will one receive on a 1,000,000.00 5% CD?

0 ⤊

How much interest will one receive on a 1,000,000.00 5% CD?

2006-11-16 01:36:05 · 2 answers · asked by lana l 1 in Business & Finance ➔ Personal Finance

2 answers

US$51,267.45

US Certificates of Deposits compound daily, under the Truth in Savings Act (TISA). So the APY on a CD will be higher than the face rate on the CD.

You can check it out yourself:
http://www.bankrate.com/brm/calc/cdc/CertDeposit.asp

2006-11-16 02:08:46 · answer #1 · answered by csanda 6 · 0⤊ 0⤋

Assuming it's simple interest for one year, you would receive $50,000 interest.

2006-11-16 09:45:21 · answer #2 · answered by jinenglish68 5 · 0⤊ 0⤋