If you had invested only 1 month's worth of the emergency fund in the savings account at a 3.15% APR and the remainder in the 45-day CD at a 4.65% APR. What is the difference in the interest earned in 45 days when compared with question three? Question three was - Your fixed expenses are $1,500.45 a month. Your emergency fund has four month's worth of coverage. You invest half in a savings account with an interest rate of 3.15% APR and the other half in a 45-day CD with an interest rate of 4.65% APR. How much is your total interest in 45 days? I got $28.85 for this.

Question

Mathematics

Britney Rollins

4 March, 00:49

If you had invested only 1 month's worth of the emergency fund in the savings account at a 3.15% APR and the remainder in the 45-day CD at a 4.65% APR. What is the difference in the interest earned in 45 days when compared with question three? Question three was - Your fixed expenses are $1,500.45 a month. Your emergency fund has four month's worth of coverage. You invest half in a savings account with an interest rate of 3.15% APR and the other half in a 45-day CD with an interest rate of 4.65% APR. How much is your total interest in 45 days? I got $28.85 for this.

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Answers (1)

Know the Answer?

Angel Mckenzie · Answer 1

I answered this question before.

Given:

Fixed monthly expenses: $1,500.45

Emergency fund is 4 month's worth: 1,500.45 x 4 = 6,001.80

Question 3:

Half of the emergency fund is invested in savings account with interest rate 3.15% APR

Half of the emergency fund is invested in 45-day CD with an interest rate of 4.65% APR.

6,001.80 * 1/2 = 3,000.90 * 3.15% * 45/360 = 11.82

6,001.80 * 1/2 = 3,000.90 * 4.65% * 45/360 = 17.44

29.26

1 month's worth of the emergency fund in the savings account and the remainder in the 45-day CD.

6,001.80 * 1/4 = 1,500.45 * 3.15% * 45/360 = 5.91

6,001.80 * 3/4 = 4,501.35 * 4.65% * 45/360 = 26.16

32.07