Saturday, September 24, 2022

# Final Interest Rate Increase: How Much Can I Earn If I Invest \$500,000 Over a Fixed Period?

How much money can be earned in interest rate with a traditional fixed term of \$500,000; \$200,000; \$100,000 or \$50,000 in a month or a year

By iProfessional

29/07/2022 – 09,17hs

Currently, the floor for Deposit of fixed period Went from paying for 30 days with a maximum capitalization of \$10,000,000 53% p.a. to 61% p.a. (TNA), it generates that effective annual rate be 81.3% about.

This makes many people wonder: how much do I earn if I put \$500,000 in a given period after the last rise of Rate of interest,

## How much does a fixed term of \$500,000 pay?

if we decide Invest \$500,000 in 30 days With this new rate, it will generate \$25,400 per month interestabout.

In the hypothetical case that we invest that money continuously every 30 days, at the end of the year We will receive \$500,000 of capital and \$406,500 interest, Getting a total of \$906,500. How much can I earn if I put in \$500,000 over a certain period of time after the previous interest rate increase?

## How much does a fixed term of \$50,000 give me?

Instead, if we decide Invest \$50,000 One 30 dayswill generate us \$2,540 interestabout.

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In the hypothetical case that we invest that money continuously every 30 days, at the end of the year we will get \$50,000 principal and \$40,650 interest, Total \$90,650.

## How much money can be made with a traditional fixed tenure of \$100,000

if we invest \$100,000 One 30 days with this new bowlwill generate us \$5,080 interest, about. If we continuously invest that money every 30 days, at the end of the year we will get \$100,000 principal and \$81,300 interest, Total \$181,300

## How much does a fixed term of \$200,000 make?

If we decide to invest \$200,000 in 30 days with this new rate, it will generate \$10,160 interest, about. In the hypothetical case that we invest that money continuously every 30 days, at the end of the year We will receive \$200,000 capital and \$162,600 interest, Total earnings of \$362,600 The minimum limit for a 30-day fixed deposit with a maximum capitalization of \$10,000,000 is 48% p.a.

## Calculate interest for a certain period

Although banks They provide simulators to know if exact interest For a given period, it is important to learn how to calculate it through some simple formulas.

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### annual nominal interest

The annual nominal interest is right amount Which we will get by keeping a fixed period for a whole year.

If the annualized nominal rate is 48%, the annual nominal interest would be \$48,000, because: 100,000 x 48 / 10 = 48,000.

### monthly nominal interest

On the other hand, the monthly nominal interest will be Nominal profit we will get in a month, To calculate this, you need to get the monthly nominal rate that results from dividing the annual nominal rate by twelve.

If the TNA is 48%, the monthly nominal rate will be 4%, so if you invest \$100,000 the monthly nominal interest will reach \$4,000.

### annual effective interest

In the end, there will be an economic benefit of making the annual cash a fixed term of one year, but renvirtiendo monthly interest.

To find out you have to apply the formula compound capitalizationwhich is: principal x (1 + interest rate) ^ period of time.

If the initial capital is \$100,000, the monthly nominal rate is 4% and the term is twelve months, the annual effective interest will be approximately \$60,000, because: 100,000 x (1 + 0.04) ^ 12 = 160,000. Nation World News Deskhttps://nationworldnews.com
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