Personal Finance Questions and Answers

How much interest on $40,000 (a)4.35%?

If I put $40,000 in a funds account earn 4.35% interest, how much would I get per month? What's the formula for figure out interest earned per month? Thanks.


Answers: If the interest is remunerated monthly (isn't always, you involve to check the rules of the account you're considering), consequently it will depend on the definition of interest rate.

When they say 4.35, explicitly probably the compound interest rate. So if it's paid and compounded monthly, afterwards in the first month you acquire x, in the subsequent month it's a little more (as you attain interest on interest) so to speak. So if you're planning on taking it out monthly, you won't.

To arrive at 4.35% annually, compounded monthly, would be a rate of .355% per month, or $142 per month.
(40,000 x .0435 x 1) / 12 = 145

$145 per month

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