CD Investing Question?

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CD Investing Question?

I don't know diddley about this. What is my return if I buy a CD for $1,000, 6mo, 4.00 APR, 4.08 APY? What's the calculation for this so I can figure this for myself in the future (amt x term x apr / number of cosmos in the sky = dollar bill toilet paper)?

2007-01-21 23:59:19 · 1 answers · asked by Jim C 5 in Business & Finance ➔ Investing

1 answers

Just don't buy cds & you will be way ahead. Will not keep pace with inflation after taxes. No reason to calculate either way. APY assumes reinvestment at same rate ie throwing good money after bad.

2007-01-22 01:11:58 · answer #1 · answered by vegas_iwish 5 · 0⤊ 0⤋