All categories

2 years ago

Suppose you buy a CD for $1000 that earns 2.5% APR and is compounded

Mathematics

1 answer:

labwork [276]2 years ago

7 0

The early withdrawal fee on this account is $6.25

Step-by-step explanation:

Suppose you buy a CD for $1000

It 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Assume that if funds are withdrawn before the CD matures, the early withdrawal fee is 3 months' interest

We need to find the early withdrawal fee on this account

∵ The annual interest is 2.5%

- Change it to decimal

∵ 2.5% = 2.5 ÷ 100 = 0.025

∴ The annual interest rate is 0.025

∵ The interest is compounded quarterly

∴ The interest rate per quarter = 0.025 ÷ 4 = 0.00625

∵ The early withdrawal fee is 3 months' interest

∵ You buy the CD for $1000

∵ A quarter year = 3 months

∴ The early withdrawal fee = 1000 × 0.00625 = $6.25

The early withdrawal fee on this account is $6.25

Learn more:

You can learn more about the interest in brainly.com/question/11149751

#LearnwithBrainly

You might be interested in

What do all points that lie on the y-axis have in common in terms of their coordinates?

vitfil [10]

For all points that lie on the y-axis, the x-coordinate is zero.

5 0

2 years ago

The first gardener can finish the job in 6 hours, and the second gardener can do the same job in 7 hours. How long it will take

marissa [1.9K]

If the first gardener can finish the job in 6 hours, it means that every hour he completes 1/6 of the job.

By the same logic, the second gardener completes 1/7 of the job per hour.

So, if they work together, they complete

$\dfrac{1}{6}+\dfrac{1}{7}=\dfrac{7+6}{42}=\dfrac{13}{42}$

of the job per hour.

So, after 42/13 of a hour, they'll complete the job. Since one hour is made of 60 minutes, 42/13 of a hour is

$\dfrac{42}{13}\cdot 60 \approx 194$

So, it will take them about 194 minutes to finish the job, i.e. about 3 hours and 14 minutes.

8 0

3 years ago

Pls Help anyone. Ill will give brainliest and you will get 45 points pls anyone pls ㏒㏒㏒㏒㏒㏒

frosja888 [35]

The answer is E: (b-c)(a+c)

3 0

3 years ago

List the next four multiples of the fraction. 3/6

Arlecino [84]

They are 6/6, 9/6, 12/6, and 15/6. Please give brainliest!!!

6 0

2 years ago

Read 2 more answers

Simplify the difference quotient f ( x + h ) â f ( x ) h for the function f ( x ) = 6 x â x 2

ladessa [460]

Answer:

final answer is 6

Step-by-step explanation:

Given $f(x)=6x-2$

To find the difference quotient use formula

$\frac{f(x+h)-f(x)}{h}$

$f(x)=6x-2$

$f(x+h)=6(x+h)-2=6x+6h-2$

Now plug it in the formula

$\frac{f(x+h)-f(x)}{h}$

$\frac{6x+6h-2-(6x-2)}{h}$

$\frac{6x+6h-2-6x+2)}{h}$

$\frac{6h}{h}$

5 0

3 years ago