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May 9th, 2016, 11:36 AM   #1
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average percent multiplier?

If I have 3 fixed rate Annuity or Bank CD accts.
The 1st acct a balance of 100,000 earns an annual percent yield of (APY) 3.25% (0.0325).
The 2nd acct a balance of 100,000 earns 3.0% (APY).
The 3rd acct a balance of 300,000 earns 3.3% (APY).

They all have a 10yr maturity date.
How would I determine what percent I could multiply the whole balance total of all 3 accts (500,000) to find my yearly earnings (?) without having to do all 3 separate and add them up.
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May 9th, 2016, 11:48 AM   #2
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The method you've mentioned is essentially the only way.
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May 20th, 2016, 02:00 PM   #3
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You could find an "average" interest rate. Since the 3.3% is for three times as much money as the others, "weight" the average: (3.25+ 3+ 3(3.3))/(1+ 1+ 3)=16.15/5 = 3.23. Then Find 3.23% of $500,000: 0.0323(500,000)= $16150.

However, that is exactly the same work as finding 3.25% of $100,000= $3250, 3% of $100,00= $3000, 3.3% of 300,000= $9900.
$3250+ $3000+ $9900= $16150.
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