Your fixed expenses are $1,151.65/month. You saved 4 months' worth in an emergency fund, investing 25% in a savings account at a 3.3% APR and the rest in a 60-day CD at a 4.3% APR. How much total inWhat is the difference in the interest that would have accrued if all of the money from question #9 had only been in the savings account for the same 60 days? Round to the nearest penny.terest accrues over 60 days? Round any decimals to the nearest penny.
To calculate the interest accrued over 60 days:
1. Calculate the amount saved in the savings account:
Total savings = 4 months' worth of fixed expenses = $1,151.65/month * 4 months = $4,606.60
Amount in savings account = 25% of total savings = 0.25 * $4,606.60 = $1,151.65
2. Calculate the interest accrued in the savings account over 60 days:
Interest rate for savings account = 3.3% APR = 3.3/100 = 0.033 per year
Interest accrued in savings account = Principal * Rate * Time
Interest accrued = $1,151.65 * 0.033 * (60/365) = $6.04
3. Calculate the amount saved in the 60-day CD:
Amount in 60-day CD = Total savings - Amount in savings account = $4,606.60 - $1,151.65 = $3,454.95
4. Calculate the interest accrued in the 60-day CD over 60 days:
Interest rate for CD = 4.3% APR = 4.3/100 = 0.043 per year
Interest accrued in CD = Principal * Rate * Time
Interest accrued = $3,454.95 * 0.043 * (60/365) = $21.06
5. Calculate the total interest accrued over 60 days:
Total interest accrued = Interest accrued in savings account + Interest accrued in CD = $6.04 + $21.06 = $27.10
Therefore, the total interest accrued over 60 days with the money in both accounts is $27.10.