Cameron has decided to diversify his investments in the following way: $3,000 in an account earning 2.7% simple interest, $5,000 in a savings account earning 1.8% interest compounded annually, and $5,000 in a certificate of deposit earning 3.9% interest compounded quarterly. how much total interest will cameron earn on his investments at the end of 3 years? a. $530.87 b. $665.57 c. $973.30 d. $1,135.30

(d) $1,135.30

Step-by-step explanation:

As per the given data of the question,

$3,000 in an account earning 2.7% simple interest,

Therefore,

Amount, A = 3000 (1 + 3 × 0.027)

                  = $3,243

∴ Interest earned = $3,243 - $ 3,000

                             = $243

$5,000 in a savings account earning 1.8% interest compounded annually

Therefore,

Amount,

                         = $5,274.89

∴ Interest earned = $5,274.89 - $ 5,000

                             = $274.89

$5,000 in a certificate of deposit earning 3.9% interest compounded quarterly

Therefore,

Amount,

                         = $5,617.41

∴ Interest earned = $5,617.41 - $ 5,000

                             = $617.41

Now,

Total interest earned = 243 + 274.89 + 617.41

                                   = $1,135.30

Hence, total interest will Cameron earn on his investments at the end of 3 years = $1,135.30

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