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elbanditoroso's avatar

Is there a way to know how much $$ the bank earned from my deposit?

Asked by elbanditoroso (33177points) 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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