Blanche bought a 5-year CD for $7100 with an APR of 2.8%, compounded quarterly, but she wants to take all her money out 9 months early. The early redemption fee for the CD is 3 months' interest on the original principal. Help Blanche determine how much money she will end up earning in interest on the CD.

Part I: What is the periodic interest rate of Blanche's CD? How many quarters will Blanche have kept her money in the CD before she takes all her money out?

Part II: How much will Blanche's CD be worth when she takes all her money out (before the fee is applied)?

Part III: How much will Blanche have earned in interest before the fee is applied?

Part IV: How much will Blanche get charged as an early redemption fee for taking all her money out 9 months early?

Part V: How much will Blanche earn in interest after the fee is applied?

Answer rating: 100% (QA)

Part I Periodic Interest Rate and Quarters The Annual Percentage Rate APR is 28 compounded quarterly ... View the full answer