Adam invested $12,000 in a six-year CD that paid 7.1% interest, but later needed to withdraw $2,500 early. If the CD's penalty for early withdrawal was eighteen months' worth of interest on the amount withdrawn, how much of a penalty did Adam pay?

a.

$138.89

b.

$177.50

c.

$266.25

d.

$319.50

Question

Mathematics

Toby Dickson

2 April, 23:58

Adam invested $12,000 in a six-year CD that paid 7.1% interest, but later needed to withdraw $2,500 early. If the CD's penalty for early withdrawal was eighteen months' worth of interest on the amount withdrawn, how much of a penalty did Adam pay?

a.

$138.89

b.

$177.50

c.

$266.25

d.

$319.50

+2

Answers (1)

Know the Answer?

Isai Russell · Answer 1

The question is asking to choose among the following choices states the value of penalty that Adam would have if the CD's penalty for early withdrawals was eighteen months' worth of interest on the amount width drawn, and base on my calculation, the possible answer would be letter C. $266.25

Adam invested $12,000 in a six-year CD that paid 7.1% interest, but later needed to withdraw $2,500 early. If the CD's penalty for early withdrawal was eighteen months' worth of interest on the amount withdrawn, how much of a penalty did Adam pay?a.$138.89b.$177.50c.$266.25d.$319.50

Adam invested $12,000 in a six-year CD that paid 7.1% interest, but later needed to withdraw $2,500 early. If the CD's penalty for early withdrawal was eighteen months' worth of interest on the amount withdrawn, how much of a penalty did Adam pay?

a.

$138.89

b.

$177.50

c.

$266.25

d.

$319.50