At the beginning of 2011,Mary purchased a 3-year certificate of deposit (CD)for $8,760.The maturity value of the certificate was $10,000 and it was to yield 4.5%.She also purchased a Series EE bond for $6,400 with a maturity value in 10 years of $10,000.Mary must recognize income from the certificate of deposit each year,2011-2013,and $3,600 from the Series EE bonds in 2020.

Question

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This is true according to the information given in the question. Mary must recognize income from the certificate of deposit each year for 3 years at a rate of 4.5%, and she must recognize $3,600 of income from the Series EE bond in the year 2020.

At the Beginning of 2011,Mary Purchased a 3-Year Certificate of Deposit