Question

you saved $10,943.89 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 in 30 days between the two savings instruments?

Answer 1

Answer above is wrong

Explanation:

Couldnb't tell you how to get the answer I just know that when I got this answer wrong it told me the right answer.

In fact most of the answers for this portion are wrong on here.

10. $1,201.33

11. $629.23

12. $7.74

13. $347.51

14. $3,753.78

15. 6

16. $25.24

17. $416.70

18. $2,903.67

19. $22.96

CORRECT ANSWER

$ 22.96

Answer 2

The difference in the amount of interest in 30 days between the two savings instruments is $ 23.28

Explanation:

Given : you saved $10,943.89 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

We have to calculate the difference in the amount of interest in 30 days between the two savings instruments.

We know,

`\text{Simple interest}=(principal* rate* time)/(100)`

Consider

instrument 1) One fourth is in a regular savings account at a 3.5% APR

One fourth of saving = One fourth of $10,943.89 =
`(1)/(4)\cdot10943.89=2735.97`

Thus, Interest can be calculate using above formula ,

P = 2735.97 , r = 3.5% =
`(3.5)/(12)\%` , t = 1 month

`\text{Simple interest}=(2735.97 * 3.5* 1)/(12* 100)`

Simplify , we get,

Interest is $ 7.98

instrument 2) Remaining three fourth is in a regular savings account at a 4.57% APR

One fourth of saving = One fourth of $10,943.89 =
`(3)/(4)\cdot10943.89=8207.92`

Thus, Interest can be calculate using above formula ,

P = 8207.92 , r = 4.57% =
`(4.57)/(12)\%` , t = 1 month

`\text{Simple interest}=( 8207.92 * 4.57 * 1)/(12* 100)`

Simplify , we get,

Interest is $ 31.26

Thus, the difference in the amount of interest in 30 days between the two savings instruments = $ 31.26 - $ 7.98 = $ 23.28