Question

Suppose you buy a CD for $1000 that 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 Assume that if funds are withdrawn before the CD matures, the early withdrawal fee is 3 months' interest. What is the early withdrawal fee on this account?. A.$3.75. B.$6.25. C.$3.13. D.$1.25.

Answer 1

6.25 or B is the answer

Step-by-step explanation: Apex

Answer 2

The early withdrawal fee on this account if funds are withdrawn before the CD matures is $6.25. The correct answer between all the choices given is the second choice or letter B. I am hoping that this answer has satisfied your query about this specific question.