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

4.57%−3.5%
=1.07%

(0.0107×10,943.89)÷12
=9.76

Answer 2

Answer:

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

Step-by-step 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,

$\text{Simple interest}=\frac{principal\times rate\times time}{100}$

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 = $\frac{1}{4}\cdot10943.89=2735.97$

Thus, Interest  can be calculate using above formula ,

P = 2735.97 , r = 3.5% = $\frac{3.5}{12}\%$  , t = 1 month

$\text{Simple interest}=\frac{2735.97 \times 3.5\times 1}{12\times 100}$

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 = $\frac{3}{4}\cdot10943.89=8207.92$

Thus, Interest  can be calculate using above formula ,

P = 8207.92 , r = 4.57% = $\frac{4.57}{12}\%$  , t = 1 month

$\text{Simple interest}=\frac{ 8207.92 \times 4.57 \times 1}{12\times 100}$

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