Answer:
Total interest over 2 months: 31.10 $
Explanation:
Total amount saved: 1151.65 $/month x 4 month = 4606.6 $
Interest from savings account - 3.3% annually, interest is compounded monthly
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where CI is compounded interest, P is the principal amount, r is the interest rate, t is the time of investment and n is the number of times interest in compounded per unit t
P = 1151.65 $
r = 3.3% annually = 0.275% monthly
t = 2 months
\(CI = P(1+\frac{r}{n})^{nt}-P\)
\(CI = 1151.65*(1+\frac{0.00275}{1})^{1*2}-1151.65\)
\(CI = 1151.65*(1.00275)^{2}-1151.65\)
\(CI = 1157.99-1151.65\)
\(CI = 6.34\)
Interest from CD - 4.3% annually, interest is not compounded
\(I = P(1+rt)-P\)
where I is interest, P is the principal amount, r is the interest rate and t is the time of investment
P = 3454.95 $
r = 4.3% annually = 0.358% monthly
t = 2 months
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Total interest over 2 months: 6.34 + 24.76
Total interest over 2 months: 31.10 $
