Expert: Lynn Houston - 7/20/2009

Question
Hi!

If I have $100.00 invested into a fund, and it stays at + .04% and pays a dividend monthly, how much did I earn in a month?

I don't know if it's 4 cents, 40 cents, or $4.00.. but I'm pretty sure it's one of those..

thanks!

Answer
4 cents per month.

To figure percents, I usually start with 10% because all you do is move the decimal one place.  10% of 100.00 is 10.  4% would be $4, but now, since it's .04%, you have to move the decimal 2 more times to the left on the $4.00, so $.04