ok I am dumb. I just put 15k in a cd...in 4 months it will increases by 4.9%....does this mean it will increase by $735? Cant believe i have to ask, but i want to be sure.
2007-11-09 05:56:06 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
really? well why did they tell me it would increase by 4.9%?
2007-11-09 06:10:08 · update #1
It depends on the terms given on the term deposit. A term deposit that pays 4.9% really only pays 4.9% annually so you will actually receive $15000*4.9% * 4/12 = $245
2007-11-09 06:01:39 · answer #1 · answered by Anonymous · 2⤊ 0⤋
When stating a rate the supplier of the CD will say 4.9% Annual Percentage Rate (APR) or Annual Percentage Yield (APY). Note the word is Annual. So in a four month CD you would receive 1/3 of the stated APR.
2007-11-09 15:18:59 · answer #2 · answered by Peter D 7 · 0⤊ 0⤋
to increase that much the yearly rete would have to be about 20% and so forget it -- you will receive a notice in 4 months saying the cd has been increased by about 235 dollars!!!
2007-11-09 14:04:53 · answer #3 · answered by mister ed 7 · 1⤊ 0⤋
YOU SAYING YOU A MILLIONAIRE?
2007-11-09 14:03:55 · answer #4 · answered by webcop33 4 · 0⤊ 1⤋