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?
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.