CD worksheet

1. Balance at maturity: $12,676.51

1. Split the yearly rate into 2 parts, because the bank adds interest 2 times a year

   $i$$=\frac{0.048}{2}$$=0.024$

2. Count how many times interest is added: 2 times a year for 60 months (5 years)

   $N$$=2\times 5$$=10$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$10,000.00}\times {\left(1+0.024\right)}^{10}$$=\mathrm{\$12,676.51}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$12,676.51}-\mathrm{\$10,000.00}$$=\mathrm{\$2,676.51}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.024\right)}^2-1$$=\mathrm{4.8576\%}$

2. Balance at maturity: $9,408.70

1. Split the yearly rate into 4 parts, because the bank adds interest 4 times a year

   $i$$=\frac{0.034}{4}$$=0.0085$

2. Count how many times interest is added: 4 times a year for 36 months (3 years)

   $N$$=4\times 3$$=12$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$8,500.00}\times {\left(1+0.0085\right)}^{12}$$=\mathrm{\$9,408.70}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$9,408.70}-\mathrm{\$8,500.00}$$=\mathrm{\$908.70}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.0085\right)}^4-1$$=\mathrm{3.4436\%}$

3. Balance at maturity: $7,432.11

1. Split the yearly rate into 12 parts, because the bank adds interest 12 times a year

   $i$$=\frac{0.04}{12}$$=0.0033333333$

2. Count how many times interest is added: 12 times a year for 18 months (1.5 years)

   $N$$=12\times 1.5$$=18$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$7,000.00}\times {\left(1+0.0033333333\right)}^{18}$$=\mathrm{\$7,432.11}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$7,432.11}-\mathrm{\$7,000.00}$$=\mathrm{\$432.11}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.0033333333\right)}^{12}-1$$=\mathrm{4.0742\%}$

4. Balance at maturity: $10,547.29

1. Split the yearly rate into 2 parts, because the bank adds interest 2 times a year

   $i$$=\frac{0.054}{2}$$=0.027$

2. Count how many times interest is added: 2 times a year for 12 months (1 years)

   $N$$=2\times 1$$=2$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$10,000.00}\times {\left(1+0.027\right)}^2$$=\mathrm{\$10,547.29}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$10,547.29}-\mathrm{\$10,000.00}$$=\mathrm{\$547.29}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.027\right)}^2-1$$=\mathrm{5.4729\%}$

5. Balance at maturity: $10,450.66

1. Split the yearly rate into 4 parts, because the bank adds interest 4 times a year

   $i$$=\frac{0.03}{4}$$=0.0075$

2. Count how many times interest is added: 4 times a year for 60 months (5 years)

   $N$$=4\times 5$$=20$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$9,000.00}\times {\left(1+0.0075\right)}^{20}$$=\mathrm{\$10,450.66}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$10,450.66}-\mathrm{\$9,000.00}$$=\mathrm{\$1,450.66}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.0075\right)}^4-1$$=\mathrm{3.0339\%}$

6. Balance at maturity: $17,285.22

1. Split the yearly rate into 12 parts, because the bank adds interest 12 times a year

   $i$$=\frac{0.065}{12}$$=0.0054166667$

2. Count how many times interest is added: 12 times a year for 60 months (5 years)

   $N$$=12\times 5$$=60$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$12,500.00}\times {\left(1+0.0054166667\right)}^{60}$$=\mathrm{\$17,285.22}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$17,285.22}-\mathrm{\$12,500.00}$$=\mathrm{\$4,785.22}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.0054166667\right)}^{12}-1$$=\mathrm{6.6972\%}$

7. Balance at maturity: $9,922.50

1. Split the yearly rate into 1 parts, because the bank adds interest 1 times a year

   $i$$=\frac{0.05}{1}$$=0.05$

2. Count how many times interest is added: 1 times a year for 24 months (2 years)

   $N$$=1\times 2$$=2$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$9,000.00}\times {\left(1+0.05\right)}^2$$=\mathrm{\$9,922.50}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$9,922.50}-\mathrm{\$9,000.00}$$=\mathrm{\$922.50}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.05\right)}^1-1$$=\mathrm{5\%}$

8. Balance at maturity: $11,357.68

1. Split the yearly rate into 365 parts, because the bank adds interest 365 times a year

   $i$$=\frac{0.032}{365}$$=0.0000876712$

2. Count how many times interest is added: 365 times a year for 12 months (1 years)

   $N$$=365\times 1$$=365$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$11,000.00}\times {\left(1+0.0000876712\right)}^{365}$$=\mathrm{\$11,357.68}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$11,357.68}-\mathrm{\$11,000.00}$$=\mathrm{\$357.68}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.0000876712\right)}^{365}-1$$=\mathrm{3.2516\%}$

9. Balance at maturity: $11,078.98

1. Split the yearly rate into 2 parts, because the bank adds interest 2 times a year

   $i$$=\frac{0.042}{2}$$=0.021$

2. Count how many times interest is added: 2 times a year for 60 months (5 years)

   $N$$=2\times 5$$=10$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$9,000.00}\times {\left(1+0.021\right)}^{10}$$=\mathrm{\$11,078.98}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$11,078.98}-\mathrm{\$9,000.00}$$=\mathrm{\$2,078.98}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.021\right)}^2-1$$=\mathrm{4.2441\%}$

10. Balance at maturity: $10,046.52

1. Split the yearly rate into 12 parts, because the bank adds interest 12 times a year

   $i$$=\frac{0.028}{12}$$=0.0023333333$

2. Count how many times interest is added: 12 times a year for 24 months (2 years)

   $N$$=12\times 2$$=24$

3. Grow the deposit: each time, the balance gains interest on everything already in it, including past interest

   $\mathrm{\$9,500.00}\times {\left(1+0.0023333333\right)}^{24}$$=\mathrm{\$10,046.52}$

4. Take away your deposit to see the interest you earned

   $\mathrm{\$10,046.52}-\mathrm{\$9,500.00}$$=\mathrm{\$546.52}$

5. Find the APY: what the rate works out to over one full year, once interest on interest is counted

   ${\left(1+0.0023333333\right)}^{12}-1$$=\mathrm{2.8362\%}$