Abank offers a four year cd with an interest rate of 2.75%. the penalty for early withdrawal from the cd is nine months of simple interest, calculated on the amount withdrawn. rachel invests $6,200. if she withdraws $2250 after one year, how much will the penalty be? round answer to the nearest dollar. a. $46 b. $56 c. $128 d. $557

We have been given that a bank offers a four year cd with an interest rate of 2.75%. The penalty for early withdrawal from the CD is nine months of simple interest, calculated on the amount withdrawn. Rachel withdraws $2250 after one year. We are asked to find the amount of penalty.

We will use simple interest formula to solve our given problem.

, where,

I = Amount of interest,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Since our given time is in months, so we need to convert 9 months into year.

1 year = 12 months

9 months =

Upon substituting our given values in simple interest formula, we will get:

Upon rounding to nearest dollar, we will get:

Therefore, the penalty will be $46 and option 'a' is the correct choice.

answer: 3.26019516

step-by-step explanation: