The total interest earned is $2999.11
Explanation:
In the first account, $4,000 in an account earning 3.2% simple interest and time is 4 years
The formula to apply is;
A=P(1+r/n)^nt where
A=Amount at the end of the period= ?
P=starting amount = $4000
r=3.2% = 3.2/100 =0.032
n=number of times interest applied per time period=1
t=number of time period elapsed
Substituting the values in the formula;
A=P(1+r/n)^nt
A=4000(1+0.032)⁴
A=4000(1.032)⁴
A=4537.10
Interest earned = 4537.10-4000 = $537.10
In the account , $4,000 in a savings account earning 2.1% interest compounded annually
n=1 if compounded annually, then apply the formula;
A=P(1+r/n)^nt
A=4000(1+0.021)⁴
A=4000(1.021)⁴
A=4346.73
Interest earned = 4346.73-4000 = $346.73
In the account , $7,500 in a certificate of deposit earning 5% interest compounded quarterly, n=4
A=P(1+r/n)^nt
A=7500(1+0.05/4)^4*5
A=7500(1+0.0125)^20
A=7500(1.0125)^20
A=9615.28
Interest earned = 9615.28 - 7500 = $2115.28
Total interest earned = $537.10 +$346.73 + $2115.28 =$2999.11
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Compound Interest :https://brainly.com/question/7014337
Keywords : investment, account , earning, simple interest, compound interest, annually, quarterly
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