Archive for the ‘Investing’ Category

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How does this Certificate of Deposit penalty for early withdrawal work?

Friday, April 3rd, 2009
snaghater asked:


There is a 5 year Certificate of Deposit offering 6% interest. Penalty is .75% (so 5.25% interest) for every year that the money is withdrawn early.
Does this mean that withdrawl in say, the 3rd year would give you 6% for the first 2 years and 5.25% for the 3rd, or would it be 5.25% for all 3 years?

1st deposit

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Posted in Investing | 1 Comment »

Cds?

Sunday, October 12th, 2008
Penny Lane asked:


meaning Certificate of deposit….anyone have one of those? What exactly are they….and how much time is good time to make a substantial moutn of money….are they good to get?

Brian

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Posted in Investing | 4 Comments »

CDs?

Friday, October 10th, 2008
yeah<3 asked:


what exactly is a certificate of deposit?? and what is the average interest rate for a 2yr $500 cd??? can you add money to them?? what are those things called where you agree to add a certain amount each month or something??

Sandra

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Posted in Investing | 3 Comments »

need help please?

Sunday, September 7th, 2008
jaz asked:


mr nailor invests $5,000 in a certificate of deposit at his local bank. he receives annual interest of 8% for 7yrs. how much interest will his investment earn during this time period

Juanita

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Posted in Investing | 5 Comments »

can anyone do this yucky word problem. Help?

Friday, September 5th, 2008
amy f asked:


Kevin invested p art of his $10,000 bonus in a certificate of deposit that paid 6% annual simple interest, and the ramainder in a mutual fund that paid 11% annual simple interest. If his total interest for that year was $700, how much did Kevin invest in the mutual fund?

Catherine

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Posted in Investing | 2 Comments »

help please?

Wednesday, June 25th, 2008
Slammy Sammy asked:


investing in a money market mutual fund is a higher risk than investing in a certificate of deposit because, unlike CDs, money market funds:

a. are not protected by the securities and exchange commission
b. are not insured by the FIDC
c. do not earn a fixed interest rate
d. must be held for a present amount of time

Tim

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Posted in Investing | 3 Comments »

Multiple.CHOICE?

Friday, June 13th, 2008
Beauty asked:


1 - The main disadvantage of using shells as money, instead of coins, would be a lack of:
a - durability.
b - portability.
c - uniformity.
d - divisibility.

2 - An example of representative money would be:
a - a fur coat.
b - diamonds.
c - gold earrings.
d - an IOU note.

3 - _________ is / are NOT example of a liquid asset.
a - A certificate of deposit
b - Cash
c - Traveler’s checks
d - A checking account

4 - A _________ is an example of a financial intermediary.
a - life insurance company
b - stock certificate
c - bank vault
d - bond

5 - You do not have to pay state taxes on interest earned on:
a - corporate bonds.
b - money market mutual funds.
c - junk bonds.
d - municiple bonds.

Thank you!

Willie

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Posted in Investing | 4 Comments »

algerbra/accounting help?

Wednesday, June 11th, 2008
csmitty asked:


The formula for caculating the amount of money returned for an initial deposit money into a bank account or CD(certificate of Deposit) is given by: A= P(1+r/n)the the nt power.
A is the amount of returned
P is the principal amount initially deposited.
r is the annual interest rate(expressed as decimal)
n is the compound period
t is the number of years.
Carry all calculations to 6 decimals then round to the nearest cent.
Suppose you deposit $10,000 for 2 years at the rate of 10%.
A) Calculate the return(A) if the bank compounds annually(n=1).round to nearest hundredth.show work
B)Calculate the return(A) if the bank compouds quarterly(n=4).round to nearest hundreth. show work
C)Calcualte the return(A) if the bank compounds montly(n=12). Show work
D)Calculate the return(A) if the bank compounds daily(n=365). show work
E)What observation can you make about the size of the increase on your return as your compounding increse more frequently?

Jose

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Posted in Investing | 2 Comments »

Benefits of a CD?

Wednesday, May 7th, 2008
2h@n@ asked:


What are the benefits for starting a CD? (Certificate of Deposit)

Curtis

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Posted in Investing | 3 Comments »

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