Question

Consumer math question(s).. please help! Will give medal

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?
2. 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?

Answer 1

i am still having trouble with percentages... post it in a new question and someone will help

Answer 2

First of all APR is the wrong term for interest earned on a deposit. So I'm going to guess that you really mean simple interest.

Step one figure the amount in the emergency fund. Since the monthly expenses are $1,157.65, you multiply 4 months times $1,157.65:

4($1,157.65) = $4,606.60

Answer 3

Step 2, figure out how much is 25% of $4,606.60. So change the percent in a decimal by moving the decimal to the left two places.

So 25.0 becomes .25. Or you could divide 25 by 100 and get .25

Next multiply .25 times $4,606.60 and you get $1,151.65 for the amount in the savings account.

Answer 4

Step 3, subtract the amount in deposited in the savings account from the total amount in the emergency fund.

So you $4,606.60 minus $1,151.65 Which gets you $3,454.95 in the CD.

Answer 5

Step 4, Calculate the interest earned in the savings account. Since the savings account earns 3.3% a year and there are 365 days in a non leap year, divide 3.3% by 365 to find out how much interest is earned a day and multiply it times the amount in the savings account.

First change 3.3% to a decimal by moving the decimal point to the left two places. Which gets us .033

So .033 divided by 365 times $1,151.65 Which gets us about $0.104 in interest a day.

Finally, multiply the interest earned each day by 60 days. $0.104 times 60

Which gets us about $6.25 in interest earned on the savings account for 60 days.

Answer 6

Step 5, Find the interest earned on the CD. Since the CD earns 4.3% interest a year and there are 365 days in a non leap year, divide 4.3% by 365 to find out how much interest is earned a day and multiply it times the amount in the CD.

First change 4.3% to a decimal by moving the decimal point to the left two places. Which gets us .043.

So .043 divided by 365 times $3,454.95 Which gets us about $0.407 in interest a day.

Finally, multiply the interest earned each day by 60 days. $0.407 times 60. Which gets us about $24.42 in interest earned on the CD for 60 days.

Answer 7

Step 6, The total interest earned on the savings account and the CD is:

$24.42 + 6.25 = $30.67

You should be able to figure out question two by following what I did for question 1.