Help me out: I need a CD (certificate of depositexpert

DefMATRIXense

DefMATRIXense

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How do you figure that out?

For example,
Deposit: $1,000
Total of months: 60
Interest rate:3.27%
ARP rate: 3.40%
End balance: (result answer)
 
The formula for simple interest is: F = P ( 1 + R / N ) ^ ( N * T )

Where : F = final amount
P = initial amount = 1000
R = interest rate = .0327
N = number of compounding periods = 60 (assuming it compounds monthly)
T = Time ( in years ) = 10

Don't know what ARP rate is but if you tell me I can probably figure out how to factor it into the equation.
 
I'm wrong. It's APY (Annual percentage yield) and I think 60 months is 5 years not 10 years
 
Not sure where to add the APY. Maybe do two calculations, one with 5 compounding periods and the APY rate and another with 60 and the regular interest rate.

It's too late for me to think any more but hopefully someone else will pitch in.
 
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