Your fixed expenses are $1,328.90/month and you saved 4 months' worth in an emergency fund. you place half in a 45-day cd at a 4.5% apr and the remainder in a regular savings account at a 3.2% apr. how much total interest do you earn in 45 days?

$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 =

                                            =

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 =

So, To calculate Simple interest at rate of 4.5 % we will use formula :

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 :

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 :

Thus the total interest = 14.74+10.48= 25.22

Hence you earn $25.22 as interest in 45 days.

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