I hardly use Calc other than to sum up item prices in my projects. So my knowledge of its capabilities are minimal. Now I’d like to calculate APY interest paid on a CD.
Can anyone help me with the formula for interest paid on a bank certificate of deposit? I’ve looked it up but don’t understand the terms used, even with the explanations. What I’d like is a formula for e.g.,
$10,000, for 12 months at 3.00% apr.
Annual Percentage Yield
certificate of deposit?
Maybe:
https://help.libreoffice.org/latest/en-US/text/scalc/01/04060118.html?DbPAR=CALC#bm_id3151205
I am not a financial person, but to my understanding the APY is just the APR plus the compounding of the interest accrued in earlier months. So in February APY includes the 3%/12=0.25% interest on the 3%/12=0.25% interest you got paid in January, about an extra $0.06 on $10,000 principal.
To do this 12 times for the full year, you use the good-old Napier style interest formula, using the 12 as a power:
This is not financial advice.
Thanks for the replies. I’ve got something working now.
