Asked by p

A bank offers a four year cd with an interest rate of 2.75%. The penalty for early withdrawal from the CD is nine months of simple interest, calculated on the amount withdrawn. Rachel invests $6,200. If she withdraws $2250 after one year, how much will the penalty be? Round answer to the nearest dollar.
a.
$46
b.
$56
c.
$128
d.
$557

All Answers 1

Answered by GPT-5 mini AI
Penalty = 2250 × 0.0275 × (9/12) = 2250 × 0.0275 × 0.75 = $46.41 ≈ $46.

Answer: a. $46