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Is there a way to know how much $$ the bank earned from my deposit?
Asked by elbanditoroso (33181)
1 month ago
Not what I earned, but what the bank earned.
Here’s what I mean:
Let’s say that I buy a CD at Joe’s Bank for $100,000 for a one year period at a rate of 5.5%. I will earn $5,500 next March.
The bank takes my $100,000 and uses it to make loans to other people. That’s how banking works.
If the bank uses it for mortgage loans, they might charge 6.9% or so.
If a car loan, anywhere from 6% to 10%.
If a construction loan, 6 to 10%.
And personal loans, 8% to 35% depending on a lot factors.
Here’s my question: My CD enabled the bank to loan money for some purpose, and still pay me my $5500 interest in a year. Is there a way to know how much the bank made after making the loan and paying me back?
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