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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
What else can I help you with?
How does a 3-month CD work?
A 3-month CD, or certificate of deposit, is a type of savings account where you deposit money for a fixed period of 3 months. During this time, the money earns interest at a fixed rate. At the end of the 3 months, you can withdraw the initial deposit plus the interest earned.
How does a 9 month CD work?
A 9-month CD, or certificate of deposit, is a type of savings account where you deposit money for a fixed period of 9 months. During this time, the money earns interest at a fixed rate. At the end of the 9 months, you can withdraw the money along with the interest earned.
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.
Can you explain how short term CDs work?
Short term CDs, or certificates of deposit, are a type of savings account with a fixed term and interest rate. You deposit money for a specific period, usually ranging from a few months to a few years, and in return, you earn interest. The longer the term, the higher the interest rate typically is. Once the term is up, you can withdraw your initial deposit plus the interest earned. If you withdraw before the term ends, you may incur a penalty.
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.
How does a 3-month CD work?
A 3-month CD, or certificate of deposit, is a type of savings account where you deposit money for a fixed period of 3 months. During this time, the money earns interest at a fixed rate. At the end of the 3 months, you can withdraw the initial deposit plus the interest earned.
How much interest is earned in 9 months on a deposit of 7000 at 8 percent simple interest?
70 x 8 x 3/4 ie 420
How does a 9 month CD work?
A 9-month CD, or certificate of deposit, is a type of savings account where you deposit money for a fixed period of 9 months. During this time, the money earns interest at a fixed rate. At the end of the 9 months, you can withdraw the money along with the interest earned.
How much interest you ii get for 5 lakh in 2 months in fix deposit?
The answer will depend on the rate on interest!
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.
Can you explain how short term CDs work?
Short term CDs, or certificates of deposit, are a type of savings account with a fixed term and interest rate. You deposit money for a specific period, usually ranging from a few months to a few years, and in return, you earn interest. The longer the term, the higher the interest rate typically is. Once the term is up, you can withdraw your initial deposit plus the interest earned. If you withdraw before the term ends, you may incur a penalty.
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.
Can you explain how a savings certificate works?
A savings certificate is a type of investment where you deposit a certain amount of money with a bank or credit union for a fixed period of time, usually ranging from a few months to several years. In return, the financial institution pays you a fixed interest rate on your deposit. At the end of the term, you can withdraw your initial deposit along with the interest earned. It's a low-risk way to save money and earn a guaranteed return.
What is the interest that a 510 deposit will earn in 3 months at 4.25 percent simple interest rounded to the nearest cent?
(5.1 x 4.25)/4 = 5.42
You deposit 750.00 in an account that earns 5 percent simple interest How much interest will your money earn in 6 months?
7.5 x 2.5 ie 18.75
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 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.
