Gabrielle wants to buy a cd for $300 that earns 3% apr and is compounded quarterly. the cd matures in 5 years and the early redemption fee is 3 months' interest. if gabrielle wants to take her money out 3 months before the cd matures, how much money would she get back, after the early redemption fee?

$343.51

Step-by-step explanation:

300(.03/4) Gives you 2.25 that will be the penalty paid for withdrawing early.

Now, set up the equation 300(1+.03/4)^20 which will give you 348.25

You then take 2.25 and multiply it by two, as she withdrew the money 3 months before causing her to lose out on one compound, and has a penalty of 2.25 for withdrawing early.

348-5 = 343

ok

step-by-step explanation: