Question more or less interest rates and CD's.?
Let's say, I buy a disc that pays 5 percent simple interest each year. I invest $10,000 and at the winding up of the year I get $10,500 ($10,000 + ($10,000 x 5 percent). Simple ample, this is probably why they call it simple interest.Now, suppose instead I bought a disc that pays a 5 percent annual rate compounded semiannually, or twice a year. In that case, I would downfall up with $10,506.25 at the extension of the year. Why? Because I earn $250 the first half of the year: $10,000 x 2.5 percent, which is partly the 5 percent annual interest rate. And then I earn $256.25 for the second partly of the year because I get 2.5 percent on my inspired $10,000, plus the $250 I earned the first partly of the year. In other words, I'm earning compounded interest, a return on my return, so to speak.
My request for information is why would someone choose the simple interest investment over the compounded semiannual investment or even a quarterly investment plan?
Answers: Simple interest can be better sometimes depending on the rate...
If 2 companies had a disc; 1) offered 6.5% simple interest and 2) offered 6% compounded semi-annually. which one is better?
Well:
1) 6.5% simple--no calculation required
2) 6% is compounded semi-annually. The successful rate is (1.03^2) - 1 = .0609 ; The effective rate mortal 6.09% (in your case it would be (1.025^2) - 1 = 5.0625%)
So, from the example I give, simple interest is better... basically, you other compare with equal comparisons(apples to apples)----based on their powerful rates
I don't know of any banks that are offering simple interest CDs. Perhaps put money on in the light of day, but not now. Is this an erudite question, or you've see these offered?
Can anyone trade light sweet crude oil the way you can trade any other stock or is there a ticker for oil?
Answers: oil is traded as a commodity like grain and precious metals, you sort of bet on what you think the price will be at some point in the future...hence the name " futures". You can bet thet it will trade either higher or lower.
No, but you can invest in several oil exchange traded funds. Their tickers are:
OIH
PXJ
IEZ
XLE
good luck....sure you want to go long in oil though?
How do I time when to buy a drug stock on the foundation of successes beside a fresh drug?
Do I wait for infallible milestones in the nouns of those drugs, trials, fda approval dates?Answers: Do not time the bazaar. If at all, set a price you would approaching to buy it at, and then a price you would put up for sale it at... and make sure you stick to that plan. Justify those buying/selling price points, too.
Timers across the world are losers. I worked in this industry for years and never timed my buys and sell.
If you like the company, buy it. The stock flea market has gone up more than 18% once every two years since 1932. It have gone down more than 18% once every 15 years. Do the math.