1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Svetllana [295]
2 years ago
8

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  • Assume that if funds are withdrawn  before the CD matures, the early withdrawal fee is 3 months' interest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
A basket contains 11 pieces of fruit: 4 apples, 5 oranges, and 2 bananas. Jonas takes a piece of fruit at random from the basket
zheka24 [161]

Answer:

the chances are 5/11 that Jones will get an orange and 5/11 that Beth will get an orange also

Step-by-step explanation:


4 0
3 years ago
If x = -5, then |x - 7| = <br> A: -12 <br> B: 2 <br> C: 12 <br> D: -2
SOVA2 [1]
x=-5\\\\|(-5)-7| = \\(-5)-7=-12\\\\Therefore, \\\boxed{|(-5)-7|=12}

Remember that there cannot be a negative number in an absolute value.<span />
3 0
3 years ago
Read 2 more answers
What is 37,493 decreased by 8,500
melisa1 [442]

Answer:

28,993

Step-by-step explanation:

Subtract 8,500 from 37,493

The answer is 28,993

Hope this helped :)

6 0
2 years ago
Read 2 more answers
What is the approximate volume of a cylinder with a radius of 9cm and height of 22 cm? Use 3.14 to approximate rr?
Doss [256]
The volume of a cylinder with a radius of 9 cm and a height of 22 cm is 5598.32 cm^{3}
4 0
2 years ago
Read 2 more answers
Plzz help 10 points ill give brainliest<br> write an equation that's parallel to -x + 3y = 9
Feliz [49]

Answer:

x=3y−9

Step-by-step explanation:

7 0
2 years ago
Other questions:
  • Help with #4 please.
    5·2 answers
  • 5 plus 2 minus 6 times 4​
    6·2 answers
  • PLEASE ANSWER, I HAVE A QUIZ THAT NEEDS TO GET DONE AND I HAVE NO IDEA HOW TO GET THIS!
    10·1 answer
  • What the correct answer
    13·1 answer
  • Remember to show work and explain. Use the math font.
    7·1 answer
  • QUICK ANSWER THIS!!!<br> j/-2+7=−12
    5·2 answers
  • If Jay-Jay walks 8 miles in 2 hours on average, how far will he walk if he continues at the same pace for 3 hours?
    12·2 answers
  • a negative number and its opposite are separated by a distance of 14 on the number line what is the negative number
    12·1 answer
  • Consider the following random experiment. First, roll a die and observe the number of dots facing up; then, toss a coin the numb
    5·1 answer
  • Define the following in your own words. Please do not copy and paste of the internet. Thank you in advance
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!