Question
Round any decimals to the nearest penny.
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 earned in 30 days between the two savings instruments?
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 earned in 30 days between the two savings instruments?
Answers
GPT 3.5
First, calculate how much money is in each savings instrument:
Regular savings account: $10,943.89 * 1/4 = $2,735.97
30-day CD: $10,943.89 - $2,735.97 = $8,207.92
Next, calculate the interest earned in 30 days for each savings instrument:
Regular savings account: $2,735.97 * 0.035 / 365 * 30 = $7.52
30-day CD: $8,207.92 * 0.0457 / 365 * 30 = $30.60
Finally, calculate the difference in the amount of interest earned in 30 days between the two savings instruments:
$30.60 - $7.52 = $23.08
Therefore, the difference in the amount of interest earned in 30 days between the two savings instruments is $23.08.
Regular savings account: $10,943.89 * 1/4 = $2,735.97
30-day CD: $10,943.89 - $2,735.97 = $8,207.92
Next, calculate the interest earned in 30 days for each savings instrument:
Regular savings account: $2,735.97 * 0.035 / 365 * 30 = $7.52
30-day CD: $8,207.92 * 0.0457 / 365 * 30 = $30.60
Finally, calculate the difference in the amount of interest earned in 30 days between the two savings instruments:
$30.60 - $7.52 = $23.08
Therefore, the difference in the amount of interest earned in 30 days between the two savings instruments is $23.08.