Question

20. You saved $12,644.92 in an emergency fund. One fourth is in a regular savings account at a 3.5% APR, and the remainder is in a 30-day CD at a 4.57% APR. What is the difference in the amount of interest earned in 30 days between the two savings instruments? *

Answer 1

Figure out how much is in each account. Then use the I = Prt formulas for the two different accounts. Remember, they give us time in days, not months. Once you have the two amounts, subtract them to get your final answer. @jackmullen55 @tylermcmullen23

Answer 2

I=Prt is Percent* Rate* time

Answer 3

i mean principle not percent

Answer 4

I = 3161.23 × 0.035 × 0.08 = $ 8.85 + I = 9483.69 × 0.0457 × 0.08 = $ 34.67

Answer 5

8.85 + 34.67

Answer 6

43.52

Answer 7

Yes thats right

Answer 8

so that would be my answer? ?

Answer 9

12644.92 /4 = 3161.23 (savings account)
3.5% apr....= .035

I = 3161.23 * .035 * 30/365
I = 3161.23 * .035 * .08
I = 8.85

remainder
12644.92 - 3161.23 = 9483.69 (30 day CD)
4.57% apr = .0457

I = PRT
I = 9483.69 * .0457 * .08
I = 34.67

difference : 34.67 - 8.85 = 25.82

Answer 10

difference means subtract