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 $5000 in a one-year certificate of deposit paying 8.5% interest. When you decide to withdraw $5000 early, your interest penalty is 3 months simple interest on the $5000. What interest penalty do you pay? (Round your answer to two decimal places.)

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 $5000 in a one-year certificate of deposit paying 8.5% interest. When you decide to withdraw $5000 early, your interest penalty is 3 months simple interest on the $5000. What interest penalty do you pay? (Round your answer to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 36P

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