Orlando invested $16,000 in an eight-year CD bearing 6.5% interest, but needed to withdraw $3,500 after five years. If the CD’s penalty for early withdrawal was one year’s worth of interest on the amount withdrawn, when the CD reached maturity, how much less money did Orlando earn total than if he had not made his early withdrawal?

Answers

Answer 1
Answer: given:
Principal = 16,000
term = 8 years
rate = 6.5%
pre-terminated = 5 years

S.I = 16,000 * 6.5% * 8 years
S.I = 8,320 total interest earned in 8 years
total = 16,000 + 8,320 = 24,320

S.I = 16,000 * 6.5% * 5 years
S.I = 5,200 total interest earned in 5 years

S.I = 3,500 * 6.5% * 1 year
S.I = 227.50 one year's worth of interest on amount withdrawn.

16,000 + 5,200 = 21,200
21,200 - 3,500 - 227.50 = 17,472.50 new principal amount

S.I. = 17,472.50 * 6.5% * 3 years
S.I = 3,407.14 total interest on the remaining 3 years
Total = 17,472.50 + 3,407.14 = 20,879.64

24,320 - 20,879.64 = 3,440.36 less money
 

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Answers

Sales tax and Flat tax are similar in the sense that they both will be having the same rate. The Flat tax is applied and deducted from the income source directly, but the Sales tax is deducted whenever a person goes to buy something. The percentage of taxation remains the same. In principle there is do difference between the sales tax and the flat tax. Only difference lies in the way of collecting the taxes and the place of submitting the taxes. The flat tax is collected by the seller of the goods and then the seller pays the collected tax to the government. The target is to reduce the discrimination of taxation and bringing equal taxation for all living in the country.

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I took the test and got it right

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Answers

An account that earns a higher rate of interest when you make large deposits is a money market account. 

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Answers

Answer:

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Answers

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Answers

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Helpppppppp❤️❤️❤️!!!!!!

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