31.3k views
1 vote
Suppose you buy a CD for $400 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 Assume that if funds are withdrawn before the CD matures, the early withdrawal fee is 3 months' interest.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. $6.25 B. $2.50 C. $1.25 D. $3.13

1 Answer

5 votes

Answer:

It is $2.50

Explanation:

I just answered it and it was right.

User Patriks
by
7.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.