Quantcast
answersLogoWhite
notificationBell

Top Answer
User Avatar
Wiki User
Answered 2011-01-23 04:14:19

It depends on how you deposit the money 1 million. Checking accounts usually pay very little or 0 interest so we won't be taking that as an option.

a. Savings Account - Savings account usually earn around 1% interest per year. So it will be: 833.33 dollars in 1 month

b. Certificate of Deposit - CD's usually earn around 4% interest per year. So it will be: 3333.33 dollars in 1 month

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Still Have Questions?

Related Questions


What is an interest baring CD?

An interest bearing CD (Certificate of Deposit) is when you deposit an amount of money, usually with a minimum limit, for a set amount of time, usually six months or one year. At the end of the term you can cash the CD in for the money plus interest earned. A good idea for making a little bit of money without having to part with it for too long.


Jo wants to put some money in a 15th month certificate of deposit accounts that pay 5 percent annual interest He wants the account to earn 200 in interest. How much money should he put in the account?

Amount to Deposit (P) = ? Time (N) = 15 months or 1.25 years Rate of Interest (R) = 5 Interest Earned = 200 Formula for Interest = P * N * R / 100 Rearranging the formula we get: P = Interest * 100 / N * R = (200 * 100) / 1.25 * 5 = 20000 / 6.25 = 3200 If they want to earn 200 interest they must deposit 3200 as the amount for the certificate of deposit.




What does quarterly mean in compounded interest?

It means that the interest is paid out every three months (quarter year). That means that the interest paid out after 3 months is earning interest for the remaining nine months. The quarterly interest rate is such that this compounding is taken into account for the "headline" annual rate. As a result, if the quarterly interest is taken out, then the total interest earned in a year will be slightly less than the quoted annual rate.


What is a certificate of deposit?

When you put money in a savings account, you can draw it out at any time. In a certificate of deposit, you agree to leave it in the bank for a certain period of time. They pay slightly higher interest because they know that money will be there for 3 months, 6 months, 1 year, etc. If you draw it out early, they reduce your interest.


What is 6.99 percent of 12000.00 for 72 months?

6.99/100 * $12000 * 72/12 = $5032.80 interest earned



How do you calculate interest of 6 months fixed deposit with the principal of 10000 and the interest rate is 8 percent?

The formula to calculate interest is as follows: Interest = Principal * No. of years * Rate of Interest / 100 So Interest = 10000 * 0.5 * 8 / 100 = 400/- The interest you will receive interest at the end of the 6 month period is Rs. 400/-


What is the Difference between term deposit and reccuring deposit?

Recurring Deposit: A Recurring Deposit account is one in which the customer deposits a small sum of money (usually a few hundred or thousands) every month. The bank accepts a deposit every month and at the end of the deposit period (usually 12 months or higher) the bank would return the money deposited with them along with a good interest. Term Deposit: A Term Deposit or a Fixed Deposit (FD) Account is one in which the customer deposits a big sum of money (Usually a few thousands and upwards. There is actually no limit to the amount of money you can deposit in a FD) for a fixed duration of time (Atleast 3 months or higher). Since you agree to keep the money deposited with the bank for a fixed/agreed upon duration, the bank gives you a very good interest as payment for keeping the deposit



You deposit 425 into a money market account for three months the account earns 2.5 simple interest how much money is in the account after three months?

yeah, you spelled monts instead of months, not sure i want to further this conversation your company.


Is the fixed deposit and term deposit same?

Yes. Fixed Deposit and Term Deposit both refer to the same thing. A deposit account is one in which you keep a fixed sum of money for a specific duration (Usually atleast a few months) based on an agreement with the bank. The bank does not expect you to withdraw funds regularly from this account and hence gives you a better interest rate.


How often does PNC Bank compile interest on checking accounts?

PNC Bank compiles interest on a checking account yearly. Your statement likely contains potential earned interest every month. It will be compiled every 12 months.


How is recurring deposit done?

A Recurring Deposit account is one in which the customer deposits a small sum of money (usually a few hundred or thousands) every month. The bank accepts a deposit every month and at the end of the deposit period (usually 12 months or higher) the bank would return the money deposited with them along with a good interest.


Where can I learn about certificates of deposit?

Wikipedia is a good place to start researching about CD's (Certificates of Deposit). A CD is a time deposit offered by banks, institutions and credit unions in the United States. CDs are different from a savings account because they have a specific term length, ranging from 3 or 6 months or 1 to 5 years. The intention of a CD is to hold it (in the bank) until it has reached maturity, cashing out early will cost you a fee as well as any future interest you may have earned.


How much interest would you earn if you were to deposit 575 for 3 months at 2.88 percent simple inerest?

2.88% means 2.88/100 = 0.0288 times principal 0.0288 * 575 = 16.56 * 3 = $49.68 simple interest


What is monthly interest rate if annual interest rate earned is 5 percent?

1/12th of 5% because there are 12 months in a year. ANSWER:- 1/60th per cent, which is the same as 0.01667 of the amount invested.


What is a CD account?

CD stands for certificate of deposit. Basically, you deposit money for a period of time such as 30 days , 60 day, 3 months, 6 months or more. You cannot take out the money until the time has passed without a serious financial penalty. These accounts usually have better interest rates than savings accounts.


Can you use a deposit for the last months rent?

no, as it is stated in the contract. A deposit is for damages after tenant has vacated the premises.


What are the advantages of a fixed deposit?

A FD Account is one in which the customer deposits a big sum of money (Usually a few thousands and upwards. There is actually no limit to the amount of money you can deposit in a FD) for a fixed duration of time (Atleast 3 months or higher). Since you agree to keep the money deposited with the bank for a fixed/agreed upon duration, the bank gives you a very good interest as payment for keeping the deposit The advantage is the fact that you earn a very good interest on the money you place as a fixed deposit


What is an example of a demand deposit account?

A Demand Deposit or Term Deposit or a Fixed Deposit (FD) Account is one in which the customer deposits a big sum of money (Usually a few thousands and upwards. There is actually no limit to the amount of money you can deposit in a FD) for a fixed duration of time (Atleast 3 months or higher). Since you agree to keep the money deposited with the bank for a fixed/agreed upon duration, the bank gives you a very good interest as payment for keeping the deposit


How do you open an account for recurring deposit?

A Recurring Deposit account is one in which the customer deposits a small sum of money (usually a few hundred or thousands) every month. The bank accepts a deposit every month and at the end of the deposit period (usually 12 months or higher) the bank would return the money deposited with them along with a good interest. You can open a RD account by visiting any bank and filling up the form that is used for opening an RD and pay the first months money to the bank teller.


How many months are in one million years?

12 million. 12 months in one year multiplied by a million.


Still have questions?

Trending Questions
How old is Danielle cohn? Asked By Wiki User
How many tens make 600? Asked By Wiki User
Unanswered Questions
Why we require Microsoft paint? Asked By Wiki User