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How do you figure out the amount of interest earned?

post #1 of 6
Thread Starter 
I have to admit I am new at this whole savings thing. So when you look at the APY/APR how do you figure out what your interest earned will be? For example say I put $1000 into a savings account which APY is 4.4% how much do I earn each month? Or I put that $1000 into a 6 mo. CD at 3.4% how much do I earn?? Do you see what I am asking?
post #2 of 6
I often use this calculator to figure out how much interest I will earn. You can put it for 1 year, and then just divide that number by 12 to find out how much you will make a month.

Savings calculator - MSN Money

I'm curious to see if others have found other good online calculators too.
post #3 of 6
I believe you take 3.4/12. That will be the monthly rate (.283). Then take 1000 x .283% = 2.83. Then 2.83 x 6 mo = 16.98.
post #4 of 6
Hey great post. Thanks very much . The post seems to be very much helpful.
__________________
Interest Rates Calculator
post #5 of 6
With compound interest on savings, the amount you earn each month will change (go up) as long as you leave the money in. When calculating it, be sure you use the APY (yield), not the APR (rate). It's easiest to do with an online calculator. Here are some:
Calculators for mortgages, savings, small business, credit cards and auto loans by Bankrate
post #6 of 6
On your computer go to start-new office documents-spreadsheet solutions-loan amortizations

Then just punch in your numbers.

On some computers (like my laptop) this is found under excel-loan amortizations.
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