How much money would you have if you put $2000 in a CD for 45 years.
2007-10-04 06:26:47 · 6 answers · asked by wygot 1 in Business & Finance ➔ Investing
Sorry but this is the wrong question to ask. The question should be what would be the VALUE of your money if you put $2000 in a CD for 45 years. The answer would be - 'Less than the Value of the original $2000 you began with today' Leaving your money in CD's for that long a period of time would not be wise investing, inflation and taxes would remove any opportunity of growth. Investing the money in several stock mutual funds would be a much more prudent investment technique.
2007-10-04 06:45:28 · answer #1 · answered by Richard Jackel 3 · 1⤊ 0⤋
A CD is short for Certificate of Deposit. It pays you a higher rate of interest than a savings account. The trade off is that you have to keep your money in the CD for a specific amount of time - in other words, unlike a savings account, you can't just walk into a bank at any time and say "I'd like to withdraw $100 from my CD". You can only get your money after the CD "matures". If you're afraid your mom will steal your money, well, that's a serious problem that Yahoo Answers can't help with.
2016-05-20 23:22:29 · answer #2 · answered by patsy 3 · 0⤊ 0⤋
What your looking for is called future value.
The value is dependent on the interest, which can have a dramatic effect.
Example: $2000 at 5% for 45 years would grow to $17,970.02.
The same $2000 at 7.5% would grow to $51,809.68.
2007-10-04 06:46:36 · answer #3 · answered by radar 3 · 0⤊ 0⤋
At 4.5% it would be:2000 X 1.045^45 =2000 X 7.2482 =
$ 14,496.49
2007-10-04 06:40:02 · answer #4 · answered by jimmymae2000 7 · 0⤊ 0⤋
cd;s do not last that long and no one knows what the interest rated will be in the future.
if you are going long term, try an index fund--s&p for example which beats the int rate by 100%
2007-10-04 06:36:04 · answer #5 · answered by richard t 7 · 1⤊ 1⤋
Assuming 4% annual interest you would have $11,682.35
With daily compounding it would be a little more. About $12,063.13
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2007-10-04 06:37:21 · answer #6 · answered by Barkley Hound 7 · 0⤊ 0⤋