To find the interest penalty, we first need to calculate the amount of interest earned on the $7000 investment over the 6 months it was in the certificate of deposit.
Interest earned = Principal x Rate x Time
Interest earned = $7000 x 0.086 x 0.5 (6 months is half a year)
Interest earned = $301
Now, we need to find the interest penalty, which is 3 months simple interest on the $7000.
Interest penalty = Principal x Rate x Time
Interest penalty = $7000 x 0.086 x 0.25 (3 months is a quarter of a year)
Interest penalty = $150.50
Therefore, the interest penalty you would have to pay for withdrawing the $7000 after 6 months is $150.50.
If you withdraw part of your money from a certificate of deposit before the date of maturity, you must pay an interest penalty. Suppose you invested $7000 in a one-year certificate of deposit paying 8.6% interest. After 6 months, you decide to withdraw $7000. Your interest penalty is 3 months simple interest on the $7000. What interest penalty do you pay? (Round your answer to two decimal places.) Show your work
3 answers
If you withdraw part of your money from a certificate of deposit before the date of maturity, you must pay an interest penalty. Suppose you invested $9000 in a one-year certificate of deposit paying 8.3% interest. After 6 months, you decide to withdraw $9000. Your interest penalty is 3 months simple interest on the $9000. What interest penalty do you pay? (Round your answer to two decimal places.)
To find the interest penalty, we first need to calculate the amount of interest earned on the $9000 investment over the 6 months it was in the certificate of deposit.
Interest earned = Principal x Rate x Time
Interest earned = $9000 x 0.083 x 0.5 (6 months is half a year)
Interest earned = $373.50
Now, we need to find the interest penalty, which is 3 months simple interest on the $9000.
Interest penalty = Principal x Rate x Time
Interest penalty = $9000 x 0.083 x 0.25 (3 months is a quarter of a year)
Interest penalty = $186.75
Therefore, the interest penalty you would have to pay for withdrawing the $9000 after 6 months is $186.75.
Interest earned = Principal x Rate x Time
Interest earned = $9000 x 0.083 x 0.5 (6 months is half a year)
Interest earned = $373.50
Now, we need to find the interest penalty, which is 3 months simple interest on the $9000.
Interest penalty = Principal x Rate x Time
Interest penalty = $9000 x 0.083 x 0.25 (3 months is a quarter of a year)
Interest penalty = $186.75
Therefore, the interest penalty you would have to pay for withdrawing the $9000 after 6 months is $186.75.