Financial Information
With a normal calculator, what is the formula for determining how much your money grows because of interest?
Example: I put $575,000 today in a new bank account. At a 3% interest, if I don’t touch my money, how much will I have in TOTAL 1 year from today?
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#3 written by muncie birder 1 year ago
575,000×1.03=592,250 minus what taxes are going to take. Depending on your tax bracket they will take somewhere between 20% and 35% depending on what state you live in so you will net about 587,000 more or less. But then there is inflation eating away at your pricipal and interest. It is currently running about 4.5%, so you are actually loosing money.
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Why would you put this kind of money at 3%? I hope you are kidding, you should be able to get 5 or 6% from a good CD. Any way, I use a spread sheet for my calculations.