Haley invests $16,820 in a nine-year CD bearing 5.8% interest, and $21,950 in an online savings account giving 3.0% interest. When the CD reaches maturity, how much more interest will it have generated than the savings account?

Answer:$2853.5Step-by-step explanation:Let us assume that the interest rate of both the investments of Haley is simple interest. So, $16820 amounts of investment in nine-year CD bearing 5.8% interest will get interest of [tex]16820 \times \frac{5.8}{100} \times 9 = 8780[/tex] dollars. Again, $21950 amounts of investment in an online savings account giving 3% interest will give interest of [tex]21950 \times \frac{3}{100} \times 9 = 5926.5[/tex] dollars. Therefore, the nine-year CD will give more interest by $(8780 - 5926.5) = $2853.5. (Answer)