Answer:
$25.22
Step-by-step explanation:
We are given that Your fixed expenses are $1,328.90/month and you saved 4 months' worth in an emergency fund.
So, you saved in 4 months = [tex]1328.90 \times 4[/tex]
= [tex]5315.6[/tex]
You place half in a 45-day CD at a 4.5% APR
Thus you place amount in a 45-day CD at a 4.5% APR =[tex]\frac{5315.90}{2}=2657.95[/tex]
So, To calculate Simple interest at rate of 4.5 % we will use formula :
[tex]SI= P\times R\times T[/tex]
P = Principal = 2657.95
R = rate of interest in decimal = 4.5% =0.045
T = Time in years = 45/365
Substitute the values in the formula :
[tex]SI= 2657.95 \times 0.045 \times \frac{45}{365}[/tex]
[tex]SI= 14.74[/tex]
Now the remainder in a regular savings account at a 3.2% APR.
Now the rate of rate of interest for other half is 3.2 %
P = Principal = 2657.95
R = rate of interest in decimal = 3.2% =0.032
T = Time in years = 45/365
Substitute the values in the formula :
[tex]SI= 2657.95 \times 0.032 \times \frac{45}{365}[/tex]
[tex]SI= 10.48[/tex]
Thus the total interest = 14.74+10.48= 25.22
Hence you earn $25.22 as interest in 45 days.
