Question

Tony invested $5,500 in a four-year CD that paid 4.8% interest, but later needed to withdraw $475 early. If the CD’s penalty for early withdrawal was three months’ worth of interest on the amount withdrawn, how much of a penalty did Tony pay?
a.
$5.70
b.
$22.80
c.
$60.30
d.
$66.00


Please select the best answer from the choices provided

A
B
C
D

Answer 1

Your answer would be a