Neil invested $10,000 in a certificate of deposit earning 9% per year.Unfortunately,he needed to withdraw it before the maturity date.If the penalty was two months of interest,what was his total penalty?

Name: Neil invested $10,000 in a certificate of deposit earning 9% per year.Unfortunately,he needed to withdraw it before the maturity date.If the penalty was two months of interest,what was his total penalty?
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Question

Quizplus · Accepted Answer

Penalty = Investment × Interest rate × 2 months/12 months = $10,000 × 9% × 2/12 = $150.

Neil Invested $10,000 in a Certificate of Deposit Earning 9