Sergio has decided to diversify his investments in the following way:
$4,000 in an account earning 3.2% simple interest
$4,000 in a savings account earning 2.1% interest compounded annually
$7,500 in a certificate of deposit earning 5% interest compounded quarterly
How much total interest will Sergio earn on his investments at the end of 4 years?
a.
$1,240.82
b.
$2,123.90
c.
$2,497.17
d.
$2,507.90

Question

Sergio has decided to diversify his investments in the following way:
$4,000 in an account earning 3.2% simple interest
$4,000 in a savings account earning 2.1% interest compounded annually
$7,500 in a certificate of deposit earning 5% interest compounded quarterly
How much total interest will Sergio earn on his investments at the end of 4 years?
a.
$1,240.82
b.
$2,123.90
c.
$2,497.17
d.
$2,507.90