The total amount of the emergency funds is 4,888.38 dollars. Then the correct option is B.
What is APR?
APR on a credit card is the way of saying that the interest you are charged over a year is equal to roughly of your balance.
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.
Gross income = $4,520 per month
FICA deduction = 4,520 × 0.765 = $345.78
FTW deduction = 4,520 × 0.1175 = $531.1
STW deduction = 4,520 × 0.085 = $348.2
Realized income = $3,285.92
Fixed income = 3,285.92 × 0.3 = $977.76
5 month fixed income = $4,888.38
CD saving account balance = 4888.38 × 0.75 = $3,666.38
Regular savings account balance = 4,888.38 – 3,666.28 = $1,222.1
We know that
P × APR × T
Everything must be in decimal form. For this case, we are looking at 60/365 days of the year, which the last parenthesis represents.
CD = ($3,666.28)(0.0525)(0.164384) = $31.64
RSA = ($1,222.1)(0.038)(0.164384) = $7.63
Then we have
$31.64 + $7.63 = $ 39.27
More about the APR link is given below.
https://brainly.com/question/8846837
