Suppose you buy a CD for $250 that earns 3% 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 Assume that if funds are withdrawn before the CD matures the early withdrawal fee is 3 months interest.

asked Dec 24, 2018 142k views

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3 votes

Answer:

1.88 on Ape.x

Deby answered Dec 25, 2018

by Deby

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4 votes

The early withdrawal fee on this account
250×0.03×(1÷4)=1.875

Barbsan answered Dec 31, 2018

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