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
70 x 8 x 3/4 ie 420
The answer will depend on the rate on interest!
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.
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.
(5.1 x 4.25)/4 = 5.42
7.5 x 2.5 ie 18.75
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.
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.
6.99/100 * $12000 * 72/12 = $5032.80 interest earned
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/-
Two and a half percent of 750 ie 2.5 x 7.5 which is 18.75
7% of 3,000 for 6 month