Suppose you buy a cd for $400 that earns 2.5% apr and is compounded quarterly. the cd matures in 5 years. assume that if funds are withdrawn before the cd matures, the early withdrawal fee is 3 months' interest. what is the early withdrawal fee on this account?

a. $6.25
b. $2.50
c. $1.25
d. $3.13

step-by-step explanation:

always plug in x. in this case, x equals 4.

i'm going to first solve 4(2+3x)

1) 4(2+3(4)) use pemdas to solve.

i'm going to multiply whats in the parenthesis first, so 3 times 4=12.

2)4 (2+12) i'm then going to multiply 4 by both numbers in the parenthesis (because multiplying comes before adding)

4 times 2= 8.   4 times 12= 48

4) (8+48)= 56 (answer)

i'm then going to solve 8+12x and plug in 4 for x.

1) 8 +12(4)

multiplying comes before adding, so i'm gonna multiply 12 and 4.

12 times 4= 48.

2) 8+48=56

both equal the same!