I am needing to calculate the expected return of a CD and my textbook does not cover this calculation. When asking my instructor, all I was told it was just the interest rate used and given no formula.
Please help me calculate the expected return of the following CD:
Transportation Alliance Bank (Ogden, UT) - 4 star rating, interest rate: 5.2%, compounded daily, APY: 5.34%, minimum deposit: $1,000
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As your professor said, the expected return on a CD is just the interest ...
The expert examines CDs expected return.