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Mathematics, 25.11.2021 06:00 mccoykanye
Caroline is opening a CD to save for college. She is considering a 3-year CD or a 3 Ž -year CD since she starts college around that time. She needs to
be able to have the money to make tuition payments on time, and she does not want to have to withdraw money early from the CD and face a penalty.
She has $19.400 to deposit.
a. How much interest would she earn at 1.2% compounded monthly for three years? Round to the nearest cent.
b. How much interest would she carn at 1.2% compounded monthly for 3 į years? Round to the nearest cent.
c. Caroline decides on a college after opening the 3 -year CD, and the college needs the first tuition payment a month before the CD matures.
Caroline must withdraw money from the CD early, after 3 years and 5 months. She faces two penalties. First, the interest rate for the last five months
of the CD was lowered to 0.5%. Additionall
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Caroline is opening a CD to save for college. She is considering a 3-year CD or a 3 Ž -year CD since...
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