3 ms·
1% APY compounded monthly, which is roughly below inflation. And it's taxed of course. Isn't your second statement the same as the first? 1200 dollar balance r
by quaquaqua1 7y ago
1% APY compounded monthly, which is roughly below inflation. And it's taxed of course.
Isn't your second statement the same as the first? 1200 dollar balance returns $1 per month, or $12 per year?
- BoiledCabbage 7y agoTechnically (1 + (x/12))^12 != (1 + x) In this case where x = 1% (or .01) they're so close it almost doesn't matter. For x = 10% it's a lot clearer. That said, it's also not equal to (1 + y) ^ 12, where y is whatever value is needed to have (1 + y) ^ 12 = 1 + x.