Material Detail

An interactive calculator for estimating certificate-of-deposit interest, maturity value and after-tax earnings under user-selected deposit, APY, term and tax assumptions. Learners can hold the deposit constant, vary one input, and compare the effects of annual percentage yield and holding period. The page explains the APY-based formula and can be used without an account. It also contains current-rate comparisons and optional newsletter links, separate from the calculation exercise. Results are educational estimates, not individualized financial or tax advice; actual account terms determine realized interest and penalties.

Suggested exercise: enter a hypothetical $10,000 deposit, a 12-month term and zero federal and state tax. Compare 3.50% and 4.00% APY ($350 and $400 interest under constant-APY, retained-interest assumptions), then change the term to six months. Explain why annual percentage yield differs from the return over a shorter holding period. The example rates are hypothetical, not current offers.

This will delete the comment from the database. This operation is not reversible. Are you sure you want to do it?

Thank you for reporting a broken "Go to Material" link in MERLOT to help us maintain a collection of valuable learning materials.

If you feel this material is inappropriate for the MERLOT Collection, please click SEND REPORT, and the MERLOT Team will investigate. Thank you!

You are being taken to the material on another site. This will open a new window.

Do not show me this again