How much does a $2,500 CD earn at 4% for 5 years?

$3,052.49

A $2,500 certificate of deposit at 4% for 5 years matures at $3,052.49 — $552.49 of interest.

How it is worked out

A CD compounds at a fixed rate for a fixed term. Monthly compounding is the usual case, and the APY is what that compounding is worth over a year — always slightly above the stated rate.

$2,500 × (1 + 4% ÷ 12)^(12 × 5) = $3,052.49

APY 4.07%. Interest earned: $552.49.

Open the full CD calculator to use your own figures.

Similar questions

Questions

How much does a $2,500 CD earn at 4% for 5 years?
A $2,500 certificate of deposit at 4% for 5 years matures at $3,052.49 — $552.49 of interest. $2,500 × (1 + 4% ÷ 12)^(12 × 5) = $3,052.49.
How is this worked out?
A CD compounds at a fixed rate for a fixed term. Monthly compounding is the usual case, and the APY is what that compounding is worth over a year — always slightly above the stated rate.
Can I use my own figures?
Yes — the CD calculator takes any values and shows the full result.