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beaumooney@rogers.co... | If you put 750.00 in a checking account for 3 years ,how much interest would it generate? |
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 |
 
Lita
|
no interest in checking accounts for $750 , you have to have at least 1k as minimum balance to ear interest, at least at the banks I work with! |
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astatine
 |
Less than the loss of value due to inflation, especially after taxes. |
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DebtFree
|
example: if it's making 4.5%... it would earn about $2.81 a month, or about $101.25 in three years. Of course this don't include inflation and taxes.
750 x (4.5%) = $33.75 a year, or $101.25 in three years.
my math is rough today, some one correct me if I'm wrong. |
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~SoNyA~
 |
It depends on if it Has a intrest rate, what the minimum is and you have to watch cause some places there is a dormant fee if the account isn't used atleast every six months... Savings accounts are the best... some Certificates of deposit will let you have a balance of 750.00 but not that high of an APY. What state are you in?
Also if you make more than 10 dollars in interest... make sure you get all your stuff to report it on your taxes... |
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TJ
 |
I need to know the interest rate |
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CHARITY G
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It depends on the interest rate and I'm assuming your referring to some sort of money market/checking set-up. |
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Angie
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Depends on whether the checking account earns interest or not. Many don't. So the answer may be zero. |
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Jason K
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Not enough to make it worth while - Checking accounts like to pay something like 1.4% - about 3 to 5 points behind inflation. So, yes, you would lose money on this. Try to scrape together another 250 and put it into a CD! |
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Tor
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You would probably lose money because the service charges would come to more than the interrest. |
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Gwen Z
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Not much... checking accounts don't offer much interest on them. If you want to earn more money on it, put it into a high yield account like ING Direct, which doesn't have a limit on how much you need in the account.
My guess would probably be like 15-30 bucks. |
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cbmttek
|
This requires the magic of compound interest...
Questions:
What is the interest rate?
What is the compounding frequency?
Example:
$750 starting balance
5% yearly interest (fantasy, I know, but it is just an example)
Compounds monthly
In for 3 years.
Your monthly interest is: 5% per month divided by 12 months in the year = 0.417% interest a month.
After the first month you would have:
$ 750 x 0.417% = $753.123
at the end of the second month you would have:
$753.123 x 0.417% = $756.263
and so on.
The formula is:
Future Value = Principle(1+rate)^^compounding periods
(^^ is the exponent or raised to)
In the above situation, we have
FV = 750 (1+0.417) ^^ 36 = $3264.35
If the interest rate was 1.25% and the compounding period was quarterly, then the equation would look like this:
FV = 750 (1 + 0.0031) ^^ 12 because 1.25% divided over 4 quarters is .031% per quarter, and since there are 4 quarters in a year, that would be 12 quarters over 3 years. |
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