Rita has $2,000 she considers her emergency fund. Rita
keeps the money in a 2-year CD at her local bank. The CD offers
0.70% annual interest and charges 2 months of interest if the CD is
cashed in before it matures.
Calculate the value of the CD after one year. (Hint: be careful
about the decimal places!)
Suppose she has an unexpected car repair of $1,000 and must
cash in the CD. What is the penalty charged for cashing in the CD
early? (Hint: find a monthly rate, treating the annual rate as an
APR.)
What does Rita have left after cashing in the CD and spending
the $1,000 repair costs?
Rita has $2,000 she considers her emergency fund. Rita keeps the money in a 2-year CD at her local bank. The CD offers 0
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
Rita has $2,000 she considers her emergency fund. Rita keeps the money in a 2-year CD at her local bank. The CD offers 0
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!