Any Bankers on here?

[wildstangs]

I need some help. If I purchase a 32 Day - $1000 CD with an interest rate of 3.50, what will the CD be worth at the end of the maturity? I know this is probably pretty simple, but by my calculations I get $1,035 after one month, and that seems too good to be true.

[BreckTxLonghorn]

wayyy tooo good to be true

Look more for annual percentage yield (APY) than interest rate. It's just a bit higher than the interest, but will give you a better idea of how much you'll make.

If your APY is 3.5, it means you'd make 3.5% of $1000 if you had the CD for a YEAR. So that would be $35, now you divide that by 365 (the days in a year), and multiply by 32 (the days in your CD. The amount of interest earned? $3.06

A whopping amount, I know.

[wildstangs]

Yeah I didnt figure that would be right. I was just figuring it by 1,000 x .0350.

I might as well just take it to the horse track.