Question by  saijukng (4)

How do you calculate interest on a cd?


Answer by  eatwrite (1559)

The age of the CD and the amount is multiplied by the interest rate you were told when you purchased it. The annual rate is used and interest is compound. The bank can give you a schedule or you can use a calculator.


Answer by  Lordschild (1398)

It depends on when the interest is being credited to your account and if it is being compounded. For compound interest that is paid quarterly take the annual interest rate, divide by 4 and multiply that times the principal. For the next quarter you will multiply that rate times the principal plus the interest that was added the previous quarter.

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