Question

1) Nine months ago Alexa deposited $7,000 in a three-year CD. She has received $224.16 in

interest. She withdraws $1,000. This is before the CD matures, so she pays a $250 penalty.
What is her balance after the withdrawal?

Answer 1

the balance after the withdrawal is $5,974.16

Explanation:

The computation of the balance after the withdrawal is shown below:

= Deposited amount + interest received - withdrawn amount - penalty charges

= $7,000 + $224.16 - $1,000 - $250

= $5,974.16

Hence, the balance after the withdrawal is $5,974.16

We used the above formula so that the correct value could come