CD Monthly Compounded Rate?

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CD Monthly Compounded Rate?

Investment Amount: $49,764.82
Issue Date: 10/20/2006
Maturity Date: 2/20/2007
Term: 4 months
Interest Rate: 5.60%
APY: 5.75%

How much will I earn at the end of the term?

2006-12-03 07:29:21 · 2 answers · asked by normitabetancourt 1 in Business & Finance ➔ Investing

2 answers

You would get $953 at the end of the term, I explained how I got this answer in another question of yours.

2006-12-03 08:03:50 · answer #1 · answered by koko 2 · 0⤊ 0⤋

Since I pointed out that Koko was wrong in his other answers (on daily compounding) -- I will point out that his method works for monthly compounding.

I would like to point out that CDs don't compound monthly, however.

2006-12-03 09:09:28 · answer #2 · answered by Ranto 7 · 0⤊ 0⤋