Question

Your fixed expenses are 1,500.45/month. Your emergency fund has 4 month's worth of coverage. You invest half in a savings account with an interest rate of 3.15% APR and the other half in a 45-day CD with an interest rate of 4.65% APR. How much is your total interest in 45 days?

The answer I got was $28.85

Is that right?

Answer 1

@jim_thompson5910

Feel like checking this?
You're my go to man now! (:

Answer 2

It sounds like you are paying $1,500.45 a month, for 4 months, into some fund

Afterwards, the interest is accrued for 45 days

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So you have paid 1500.45*4 = 6001.80 dollars total

This is the principle which is to be split in half among the two investment options

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You invest 6001.80/2 = 3000.90 dollars in the savings account

So you gain 3000.90*(0.0315)*(45/365) = 11.6541801369863 = 11.65 dollars from the savings account alone


You invest 3000.90 in the CD

So you gain 3000.90*(0.0465)*(45/365) = 17.2037897260273 = 17.20 dollars from the CD alone

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So in total, you get back 11.65 + 17.20 = 28.85 dollars in interest


So it looks like you are correct

Answer 3

Yay! Thank you. (:

Answer 4

yw

Answer 5

Looks good to me