business Maths

posted by .

The main concept to investing is diversify your investments. The old saying of “don’t put all of your eggs in one basket” exemplifies this concept. Kerry Stutsman has saved $2,400 and is wondering how to invest it. She was researching different investment options and found a June 2009 article called “What You Need to Know About CD’s” in Kiplinger’s Personal Finance magazine. She currently is investing in real estate through her home as well as contributing to the 401k she has at work and is thinking about investing in CD’s as well. She has the $2,400 in a savings account earning 2.35% interest. She is considering buying a 1-year certificate of deposit (CD) that pays 3.44% interest.

What will be the annual difference in her interest earnings between the savings account and the CD? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

  • business Maths -

    Savings account interest earned $ 56.40
    CD interest earned $ 82.56
    Difference in interest earnings $ 26.16
    Explanation:
    Savings account interest earned: $2,400 × 0.0235 = $56.40
    CD interest earned: $2,400 × 0.0344 = $82.56
    Difference in interest earnings: $82.56 – $56.40 = $26.16

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Christianity?

    I'm in the middle of writing an essay and one point I have to mention is the two different beliefs within Christianity. What are the two main beliefs of Christianity?
  2. English

    What does it mean when he says don't use any physical examples just expand on the main concept. Also how is Greed related to "war as a social disease" and how is empathy related. We need to explain the main concept with no examples. …
  3. college math

    when eggs in a basket are removed 2,3,4,5,6 at a time there remain, respectively, 1,2,3,4,5 eggs. when they are taken out 7 at a time, none are left over. find the smallest # of eggs that could have been contained in the basket.
  4. social studies

    1. All of the following embraced the “national view” of federalism except a. John Marshall. b. Roger B. Taney. c. Franklin D. Roosevelt. d. Lyndon B. Johnson. e. Alexander Hamilton. I can't find the answer for this, they all federalist …
  5. Math

    Suppose that 34% of the people who inquire about investments at a certain brokerage firm end up investing in stocks, 30% end up investing in bonds, and 35% end up investing in stocks or bonds (or both). What is the probability that …
  6. Business

    The contrarian approach to investing is best illustrated by A. staying out of the market no matter what experts are saying. B. always buying when others are selling. C. investing in mutual funds, contradicting the idea that investing …
  7. Reading

    which of the following statements is false?
  8. math

    jake has decided upon three business ventures to invest in. The total cost of investing in all three ventures will be $15,000. Investing in the first venture will cost $3,000 more than investing in both the second and the third venture. …
  9. Physics

    How does using the concept of resonance determine the speed of sound an in experiment?
  10. Physics

    How does using the concept of resonance determine the speed of sound an in experiment?

More Similar Questions