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Wendy winholtz 8 year savings certificate pays an annual interest rate of 5.3% at the end of 5 years she cashed out the 6,000 CD and paid a penalty of 12 month simple interest. What penalty did she pay

User Mikewaters
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1 Answer

1 vote

Answer:

318

Explanation:

The rate of 5.3% is an annual rate, and specifies the amount of interest earned in a 12-month period by the principal amount of the CD. The interest amount is found by multiplying the interest rate by the principal amount.

__

penalty

The amount of the penalty is 5.3% of 6000:

0.053 × 6000 = 318

Wendy paid a penalty of 318 for her early withdrawal.

User Karinna
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