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Since it's very important not to exceed $100,000 total in one account, (assume a CD here), can anyone give a formula to calculate the amount of principle one would need to deposit to arrive at exactly $100K on the date of maturity?
A good example is the 6.0% 3, 4, and 5 year MM certificates being discussed on this forum.
Pen Fed says these have a dividend rate of 5.83% and an APY of 6.00%
Dividends(interest) compounds daily on a 365 day basis and are credited monthly. Let's ignore leap year for simplicity.
Let the maths commence.
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