Question

Suppose you buy a CD for $1,000 that earns 2.5% APR and is compounded quarterly the CD matures in 5 years assume that if the funds are withdrawn before the CD matures the early Redemption fee is 3 months' interest what is the early Redemption fee on this account

Answer 1

Step-by-step the cd is 1000

Answer 2

the correct answer is $6.25

Explanation:

i just took the quiz and got this question correct, hope this helps!