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#1




APY CD Formula
Hello,
Can someone help me with an APY formula for a 6% CD investment of $1,000 with interest compounded daily? I just want to know what the total amount will be after 6 months if I invest $1,000. Thanks in advance. 
#2




APY CD Formula
On May 8, 4:17*am, sross002
wrote: Can someone help me with an APY formula for a 6% CD investment of $1,000 with interest compounded daily? I just want to know what the total amount will be after 6 months if I invest $1,000. Assume that A1 and A2 have the starting and ending dates. Then either of the following formulas should do the trick, whichever you feel more comfortable with: =fv(6%/365, A2A1, 0, 1000) =1000 * (1 + 6%/365)^(A2A1) Caveat: In the US, financial institutions can (and usually do) use 366 instead of 365 in leap years. 
#3




APY CD Formula
How should I input the dates? These formulas aren't working. My answer
should be like $1,029.30. What could be wrong? "joeu2004" wrote: On May 8, 4:17 am, sross002 wrote: Can someone help me with an APY formula for a 6% CD investment of $1,000 with interest compounded daily? I just want to know what the total amount will be after 6 months if I invest $1,000. Assume that A1 and A2 have the starting and ending dates. Then either of the following formulas should do the trick, whichever you feel more comfortable with: =fv(6%/365, A2A1, 0, 1000) =1000 * (1 + 6%/365)^(A2A1) Caveat: In the US, financial institutions can (and usually do) use 366 instead of 365 in leap years. 
#4




APY CD Formula
The interest isn't compounded daily. It takes effect at takeout after 6
months. So I guess it's semiannually. "sross002" wrote: How should I input the dates? These formulas aren't working. My answer should be like $1,029.30. What could be wrong? "joeu2004" wrote: On May 8, 4:17 am, sross002 wrote: Can someone help me with an APY formula for a 6% CD investment of $1,000 with interest compounded daily? I just want to know what the total amount will be after 6 months if I invest $1,000. Assume that A1 and A2 have the starting and ending dates. Then either of the following formulas should do the trick, whichever you feel more comfortable with: =fv(6%/365, A2A1, 0, 1000) =1000 * (1 + 6%/365)^(A2A1) Caveat: In the US, financial institutions can (and usually do) use 366 instead of 365 in leap years. 
#5




APY CD Formula
On May 9, 10:22 am, sross002
wrote: How should I input the dates? That will depend on localization settings, as well as your cell format. For the US, I can enter 1/9/2008 and 5/9/2008 into A1 and A2 respectively, and Excel recognizes those as dates. The important thing is: do __not__ write FV(6%/365, "5/9/2008"  "1/9/2008",....), although that might work for you. These formulas aren't working. My answer should be like $1,029.30. What could be wrong? I cannot say because you do not say (a) what you are getting instead, and (b) what you are entering, notably the dates. At 6% compound daily, $1000 grows to $1029.27 in 176 days, assuming a 366day year. If you are computing as of the end of business on 5/8/2008, that would suggest that the CD account was opened on or about 11/14/2007. How does that match reality? Nitpick.... Since that crosses the leapyear boundary, the more accurate formula to use in that is: =fv(6%/366, A3A2, 0, fv(6%/365, A2A1, 0, 1000)) where A1 has the start date in 2007, A2 has 12/31/2007, and A3 has the end date (or current date) in 2008. Using 11/14/2007 and 5/8/2008, that results in $1029.29.  original posting  On May 9, 10:22*am, sross002 wrote: How should I input the dates? *These formulas aren't working. *My answer should be like $1,029.30. *What could be wrong? "joeu2004" wrote: On May 8, 4:17 am, sross002 wrote: Can someone help me with an APY formula for a 6% CD investment of $1,000 with interest compounded daily? I just want to know what the total amount will be after 6 months if I invest $1,000. Assume that A1 and A2 have the starting and ending dates. *Then either of the following formulas should do the trick, whichever you feel more comfortable with: =fv(6%/365, A2A1, 0, 1000) =1000 * (1 + 6%/365)^(A2A1) Caveat: *In the US, financial institutions can (and usually do) use 366 instead of 365 in leap years. 
#6




APY CD Formula
On May 9, 10:47 am, sross002
wrote: The interest isn't compounded daily. It takes effect at takeout after 6 months. So I guess it's semiannually. It would take a year for $1000 to grow to about $1030 at 6% compouned semiannually. Be careful with terminology. The industry is quite fickle about this. And I would not be surprised if it varies from one country to another. In the US, CD interest can __compound__ at one frequency (typically daily), but it might be __paid__ at another frequency (for example, monthly, semiannually, annually, or at maturity). Another fickle area of terminology is the terms "interest rate", "APR" and "APY". For example, it is quite common for US institutions to misuse the term "APR" where they mean APY (i.e. compounded rate), whereas controlling US law uses the term "APR" to refer to the (simple) interest rate. Originally, you asked how to compute the "APY" for a "6% CD". (Oops, I never answered __that__ question. I leaped ahead to your next question, namely: the total amount after 6 months.) So I interpreted 6% to be the annual simple interest rate, for which the daily rate is determined by 6%/365 (or 366), at least for FDIC insured US CDs. (That is, they are following the US "Truth in Savings" regulations.) But the "6%" might be the APY, and you care obviously unclear about the compounding frequency. Get your facts straight, then post back with the details. On May 9, 10:47*am, sross002 wrote: The interest isn't compounded daily. *It takes effect at takeout after 6 months. *So I guess it's semiannually. "sross002" wrote: How should I input the dates? *These formulas aren't working. *My answer should be like $1,029.30. *What could be wrong? "joeu2004" wrote: On May 8, 4:17 am, sross002 wrote: Can someone help me with an APY formula for a 6% CD investment of $1,000 with interest compounded daily? I just want to know what the total amount will be after 6 months if I invest $1,000. Assume that A1 and A2 have the starting and ending dates. *Then either of the following formulas should do the trick, whichever you feel more comfortable with: =fv(6%/365, A2A1, 0, 1000) =1000 * (1 + 6%/365)^(A2A1) Caveat: *In the US, financial institutions can (and usually do) use 366 instead of 365 in leap years. 
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