Round any decimals to the nearest penny.
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?
First, calculate how much money you saved in total for your emergency fund:
$1,328.90/month * 4 months = $5,315.60 saved
Split this amount in half:
$5,315.60 / 2 = $2,657.80
Calculate the interest earned in the 45-day CD:
$2,657.80 * 4.5% * (45/365) = $14.48
Calculate the interest earned in the regular savings account:
$2,657.80 * 3.2% * (45/365) = $10.37
Add the interest earned in both accounts to find the total interest earned in 45 days:
$14.48 + $10.37 = $24.85
Rounded to the nearest penny, the total interest earned in 45 days is $24.85.