View Single Post
Old 10-02-07, 02:36 PM
  #12  
ModoVincere
Riding Heaven's Highways on the grand tour
 
ModoVincere's Avatar
 
Join Date: Aug 2006
Posts: 1,675
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Likes: 0
Liked 0 Times in 0 Posts
Originally Posted by x136 View Post
Wait, so you put away $7000 of your hard-earned cash for five years, and you get back $7880 at the end? That barely even seems worth the trouble.
No...you invest $1,000 for 60 most at 4.5% and have a approximately $1250 for that investment at the end of the 60mos.
Then every 5 mos, you invest 500 in a CD at approx. 4% for the remaining months of the period.

The total value of both pools of funds will be approx. $7,880 at the end of 60 mos.

And I'd much rather have $7,880 than 7,000. Its $880 more.
__________________
1 bronze, 0 silver, 1 gold
ModoVincere is offline