Answer: $1,208.28
Step-by-step explanation:
Formula we use here :-
Simple interest :
Compound amount :
Compound amount(Compounded quarterly):-
where P is the principal amount , r is the rate of interest( in decimal) and t is the time.
1) $4,000 in an account earning 3.2% simple interest
Simple interest :
2) $4,000 in a savings account earning 2.1% interest compounded annually
Compound Amount :-
Compound interest :
3) $7,500 in a certificate of deposit earning 5% interest compounded quarterly
Compound Amount :-
Compound interest :
Now, the total interest :
Hence, the total interest will sergio earn on his investments at the end of 4 years = $1,208.28