Wendy winholtz 8 year savings certificate pays an annual interest rate of 5.3% at the end of 5 years she cashed out the 6,000 CD

Question

elena-s [515]

2 years ago

14

Wendy winholtz 8 year savings certificate pays an annual interest rate of 5.3% at the end of 5 years she cashed out the 6,000 CD

and paid a penalty of 12 month simple interest. What penalty did she pay

Mathematics

1 answer:

Vlad [161] · Answer 1 · 2023-06-04T14:45:32+03:00

Answer:

318

Step-by-step explanation:

The rate of 5.3% is an annual rate, and specifies the amount of interest earned in a 12-month period by the principal amount of the CD. The interest amount is found by multiplying the interest rate by the principal amount.

__

<h3>penalty</h3>

The amount of the penalty is 5.3% of 6000:

0.053 × 6000 = 318

Wendy paid a penalty of 318 for her early withdrawal.