Ok i'm talkin about a CD you can buy at a bank.
What are the conditions of them?
are there risks involved in getting a CD?
What does CD even stand for?
Is it safe to assume as far as my understanding goes that if you buy a 100 thousand dollar CD with compound interest rate monthly with a rate of 5 % that within 10 years that 100K will turn into at least an even cool million?
2007-09-02 07:47:46 · 4 answers · asked by dark_knight 2 in Business & Finance ➔ Personal Finance
Go to the bank and ask.
2007-09-02 07:55:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
CD stands for Certificate of Deposit. Basically, you make a deposit of at least a minimum amount (usually $1,000 or more) and commit to leaving that deposit with the bank for a specified period of time (could be anywhere from 3 mos. to a few years). You'll earn interest on that deposit that will compound depending on the terms of the CD. The are usually very safe investments and a good place to leave some money for a little while.
As far as a $100,000 CD goes, earning 5% rate (which is annual, not monthly) compounded monthly would be worth around $164,000 after 10 years, not $1 million.
2007-09-02 14:57:34 · answer #2 · answered by professortig 2 · 1⤊ 0⤋
It is a certificate of deposit. You get a guaranteed interest rate for a fixed period of time. You owe a penalty if you withdraw before the expiration time.
If the annual rate is 5%. I will take you approxiamately 14 years to double your money.
2007-09-02 14:57:07 · answer #3 · answered by VATreasures 6 · 0⤊ 0⤋
There are hundreds of definitions for CD ...
Certificate of Deposit
Canadian Dollar
... are the two most common finance-related ones.
Once you figure out which one you mean, go to Google and tpye in ..
definition certificate of deposit (or canadian dollar)
2007-09-02 15:48:17 · answer #4 · answered by jdkilp 7 · 0⤊ 0⤋