Holly deposited $7,000 in a CD and will get charged penalties if she makes withdrawals within five years. However, she will need
2 answers:
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Answer:
$1,235.47
Explanation:
In this question, we use the present value formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
Rate of interest = 5% ÷ 2 = 2.5%
NPER = 15 years × 2 = 30 years
PMT = $1,000 × 7.25% ÷ 2 = $36.25
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $1,235.47
