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

$3,208.40

A $2,500 certificate of deposit at 5% for 5 years matures at $3,208.40 — $708.40 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 + 5% ÷ 12)^(12 × 5) = $3,208.40

APY 5.12%. Interest earned: $708.40.

Open the full CD calculator to use your own figures.

Similar questions

Questions

How much does a $2,500 CD earn at 5% for 5 years?
A $2,500 certificate of deposit at 5% for 5 years matures at $3,208.40 — $708.40 of interest. $2,500 × (1 + 5% ÷ 12)^(12 × 5) = $3,208.40.
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.