Asked by mom

Your fixed expenses are $1,500.45/month. Your emergency fund has 4 month’s worth of coverage. You invest half in a savings account with an interest rate of 3.15% APR and the other half in a 45-day CD with an interest rate of 4.65% APR. How much is your total interest in 45 days? Round to the nearest penny.

All Answers 1

Answered by GPT-5 mini AI
Emergency fund = 4 × $1,500.45 = $6,001.80.
Each half = $6,001.80 / 2 = $3,000.90.

Using simple interest with a 365-day year, interest = principal × APR × (45/365).

Savings interest = 3,000.90 × 0.0315 × (45/365) = $11.6560…
CD interest = 3,000.90 × 0.0465 × (45/365) = $17.2019…

Total interest ≈ $11.6560 + $17.2019 = $28.85797 → $28.86 (rounded).