English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

How much is it if i invest $57,000 into a cd account for a total of 5 years with a maturity date of 3 months?

2007-01-30 10:09:10 · 7 answers · asked by Webbie W 1 in Business & Finance Investing

at a 5.00% interest rate

2007-01-30 10:10:05 · update #1

at 5% interest rate.
Yes how much if i keep reinvesting in the 3 months cd after every maturity date for a total of 5 yrs

2007-01-30 10:15:19 · update #2

ok ASSUME the rate would stay at 5%, just give a figure

2007-01-30 10:32:03 · update #3

7 answers

It's either a 5 year maturity or a 3 month maturity. I don't get the question

2007-01-30 10:14:49 · answer #1 · answered by mindblower_2k 2 · 0 0

Impossible to answer because every 3 months the cd would be reinvested at the then current market rate for a 3 month cd. Because rates fluctuate over time you could only come up with an estimated expected return after making assumptions as to what interest rates will be in the future.

I'll need to make some more assumptions:

quarterly compounding: $73,076.12
monthly compounding: $73,151.44
daily compounding: $73,188.20

2007-01-30 18:29:48 · answer #2 · answered by SmittyJ 3 · 0 0

Why would you want to do that? There are savings accounts that have better interest, and you can keep the money liquid. Their interest rate may go down, but if you are reinvesting every three months, you'll have the same issue with the CD. Emigrant and HSBC have a 5% savings rate, and you can probably find better ones with the amount you are investing.

Here is a site that lists current rates of liquid accounts
http://www.fatwallet.com/t/52/437553/

Here is its CD discussion area
http://www.fatwallet.com/t/52/682884/

2007-01-30 18:18:16 · answer #3 · answered by scottr 4 · 0 0

Your question doesn't make sense. If the CD matures in 3 months it will not do you any good to plan to invest in it for 5 years. The interest rate would change from one investment period to the other.

I don't think you have correctly stated your question. And the bank could tell you exactly how much.

I would tend to think you would have about $72748.05 after 5 years of compounding 5% annually.

2007-01-30 18:18:08 · answer #4 · answered by Josher 3 · 0 0

Your question does not make sense. Why are you talking about a maturity date of 3 months and investing for 5 years?

2007-01-30 18:13:32 · answer #5 · answered by united9198 7 · 0 0

$57,000 X 5% = $2,850 divided by 4 = $712.50 / There is three months in each quarter. Total due is $712.50

2007-01-30 18:17:38 · answer #6 · answered by whatevit 5 · 0 0

$73,151.44

2007-01-30 18:17:52 · answer #7 · answered by edoubleyou 4 · 0 0

fedest.com, questions and answers