a regular savings account at a 3.8% APR. What is the total amount of your emergency fund? How much is in the CD and savings account? How much is the total interest earned between both accounts in 60 days? Be sure to include in your response:

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 8E
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Your gross income is $4,520.00/month. Your deductions are FICA (7.65%), federal tax withholding
(11.75%), and state tax withholding (8.5%). Your fixed expenses are 30% of your realized income. You
saved 5 months' worth in an emergency fund, placing 75% in a 60-day CD at a 5.25% APR and the rest in
a regular savings account at a 3.8% APR. What is the total amount of your emergency fund? How much is
in the CD and savings account? How much is the total interest earned between both accounts in 60 days?
Be sure to include in your response:
• the answer to the original question
• the mathematical steps for solving the problem demonstrating mathematical reasoning
Transcribed Image Text:Your gross income is $4,520.00/month. Your deductions are FICA (7.65%), federal tax withholding (11.75%), and state tax withholding (8.5%). Your fixed expenses are 30% of your realized income. You saved 5 months' worth in an emergency fund, placing 75% in a 60-day CD at a 5.25% APR and the rest in a regular savings account at a 3.8% APR. What is the total amount of your emergency fund? How much is in the CD and savings account? How much is the total interest earned between both accounts in 60 days? Be sure to include in your response: • the answer to the original question • the mathematical steps for solving the problem demonstrating mathematical reasoning
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