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Sat, Jul 22, 06 at 11:23
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How could I figure out the monthly yied(interest on my investment) on say a 9 or 6 month cd that is paying 5.35% a year, Lets say for a 25k investment Am I correct by doing this: 25,000 x .0535 = 1337.50 1337.50/12= 111.45 a month income??? thx in advance,
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Follow-Up Postings:
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- Posted by socks12345 (My Page) on Sat, Jul 22, 06 at 11:56
| I think you are right, so if you got a 9-month CD you would multiply $111.45 x 9 (or 6 for 6 months)to find out how much you would make. You could also ask the institution who is offering the CD just to verify your math. |
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| I agree with the accounting. That's before thererosion of income by taxes or of the asset by inflation. o j |
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| It might also be figured on a year-basis, then pro-rated over the number of days for periodic posting. 25,000 X 0.0535 / 365 (or 366 if a leap year, or in some cases 360 if that's the bank's policy) X 30 or 31 days in the month. |
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| We also need to know if the 5.35 is the simple interest or the compound interest. That would change things slightly |
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