Question

Cameron has decided to diversify his investments in the following way $3000 in an account earning 2.7% simple interest $5000 in a savings account earning 1.8% interest compounded annually $5000 and a certificate of deposit earning 3.9% interest compounded quarterly how much total interest or Cameron earn and his investments at the end of three years

Answer 1

A=3000(1+3*0.027)=3,243
Interest earned 243
A=5,000×(1+0.018)^(3)=5,274.89
Interest earned 274.89
A=5,000×(1+0.039÷4)^(4×3)=5,617.41
Interest earned 617.41

Total interest 243+274.89+617.41=1,135.3
Total amount Amount after 3 years
3,243+5,274.89+5,617.41=14,135.3