Sumer Put $10,000 in a 3-Month Term Deposit at Canada

Short Answer

Sumer put $10,000 in a 3-month term deposit at Canada Trust, earning a simple interest rate of 3.9%. After the 3 months, she invested the entire amount of the principal and interest from the first term deposit in a new 3-month term deposit earning the same rate of interest. How much interest did she earn on each term deposit? Why are the two interest amounts not equal?