Cameron has decided to diversify his investments in the following way $3000 in an account earning 2.7% simple interest $5000 in a savings account earning 1.8% interest compounded annually $5000 and a certificate of deposit earning 3.9% interest compounded quarterly how much total interest or Cameron earn and his investments at the end of three years

Question

Jeremy Woods

Mathematics

20 February, 14:10

Cameron has decided to diversify his investments in the following way $3000 in an account earning 2.7% simple interest $5000 in a savings account earning 1.8% interest compounded annually $5000 and a certificate of deposit earning 3.9% interest compounded quarterly how much total interest or Cameron earn and his investments at the end of three years

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Answers (1)

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Melissa Levy · Answer 1

A=3000 (1+3*0.027) = 3,243

Interest earned 243

A=5,000 * (1+0.018) ^ (3) = 5,274.89

Interest earned 274.89

A=5,000 * (1+0.039:4) ^ (4*3) = 5,617.41

Interest earned 617.41

Total interest 243+274.89+617.41=1,135.3

Total amount Amount after 3 years

3,243+5,274.89+5,617.41=14,135.3