Suppose you buy a CD for $1000 that earns 2.5% APR and is compounded quarterly. The CD matures in 5 years. Assume that if funds

Question

2 years ago

14

Suppose you buy a CD for $1000 that earns 2.5% APR and is compounded quarterly. The CD matures in 5 years. Assume that if funds

are withdrawn before the CD matures, the early withdrawal fee is 3 months' interest. What is the early withdrawal fee on this account?. A.$3.75. B.$6.25. C.$3.13. D.$1.25.

Mathematics

2 answers:

EastWind [94] · Answer 1 · 2022-08-04T15:34:06+03:00

EastWind [94]2 years ago

5 0

Answer:

6.25 or B is the answer

Step-by-step explanation: Apex

Levart [38] · Answer 2 · 2022-08-04T13:08:52+03:00

Levart [38]2 years ago

4 0

The early withdrawal fee on this account if funds are withdrawn before the CD matures is $6.25. The correct answer between all the choices given is the second choice or letter B. I am hoping that this answer has satisfied your query about this specific question.