Irene invested $27,000 in a twelve-year CD bearing 8.0% interest, but needed to withdraw $6,000 after three years. If the CD’s p
2 answers:
Answer:
Option D.
Explanation:
It is given that Irene invested $27,000 in a twelve-year CD bearing 8.0% interest.
Total interest = Principal × Rate × Time
Principal = $27,000
Rate = 8% = 0.08
Time = 12 years
Irene earn total $25,920 if she had not made her early withdrawal.
If she withdraw $6000 after three years, then the total interest is
If the CD’s penalty for early withdrawal was eighteen months’ worth of interest on the amount withdrawn.
Irene earn total $20880 if she had made her early withdrawal.
Irene earn $5,040 less money if she had made her early withdrawal.
Therefore, the correct option is D.
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Answer:
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d. Net income = Income from operating - Other expenses and losses
Net income = $15,000 - $4,000
Net income = $11.000
f. Gross profit - Sales - Cost of goods sold
$38,000 = $95,000 - Cost of goods sold
Cost of goods sold = $95,000 - $38,000
Cost of goods sold = $57,000
h. Income from operations = Net income - Other expenses and losses
Income from operations = $11,000 + $7,000
Income from operations = $18,000
g. Income from operations = Gross profit - Operating expenses
$18,000 = $38,000 - Operating expenses
Operating expenses = $38,000 - $18,000
Operating expenses = $20,000
