Question

i need help understanding this question im really lost. please help!!!!

Answer 1

Your fixed expenses are $1,151.65/month. You saved 4 months' worth in an emergency fund, investing 25% in a savings account at a 3.3% APR and the rest in a 60-day CD at a 4.3% APR. How much total interest accrues over 60 days?

Answer 2

Are you positive that you've copied everything from the original problem statement?
If your fixed expenses are $1,151.65, then four months' worth would be 4($1,151.65). What is meant by "the rest"?

Answer 3

thats where im lost heres the questions again in order to do the next one i have to have this question done but i dont get it :
9. Your fixed expenses are $1,151.65/month. You saved 4 months' worth in an emergency fund, investing 25% in a savings account at a 3.3% APR and the rest in a 60-day CD at a 4.3% APR. How much total interest accrues over 60 days? (1 point)

10. What is the difference in the interest that would have accrued if all of the money from question #9 had only been in the savings account for the same 60 days? (1 point)

Answer 4

Oh. First, calculate "four months' worth." This becomes your Principal. Part of that Principal is invested at 3.3% APR, and the other part at 4.3% APR.
You'll need to choose variables to represent the amount of money invested into each of the different investments: e. g., x dollars are invested at 3.3% and y dollars at 4.3%.
What is the sum of x and y?
It appears to me that there is insufficient info to permit us to answer this question in dollar amounts, so we may have to answer in terms of the unknown x. If x+y=P, then y=P-x.

Think about this, and then write an appropriate equation or two for interest.