4. -/1 points 0/5 submissions used\nif you withdraw part of your money from a certificate of deposit before…

4. -/1 points 0/5 submissions used\nif you withdraw part of your money from a certificate of deposit before the date of maturity, you must pay an interest penalty. suppose you invested $4,000 in a one - year certificate of deposit paying 8.4% interest. after 6 months, you decide to withdraw $3,000. your interest penalty is 3 months simple interest on the $3,000. what interest penalty (in dollars) do you pay? (round your answer to two decimal places.)\n$ \nshow my work (optional)

4. -/1 points 0/5 submissions used\nif you withdraw part of your money from a certificate of deposit before the date of maturity, you must pay an interest penalty. suppose you invested $4,000 in a one - year certificate of deposit paying 8.4% interest. after 6 months, you decide to withdraw $3,000. your interest penalty is 3 months simple interest on the $3,000. what interest penalty (in dollars) do you pay? (round your answer to two decimal places.)\n$ \nshow my work (optional)

Answer

Explanation:

Step1: Identify the simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the annual interest rate to decimal

The annual interest rate $r = 8.4%=0.084$.

Step3: Convert the time to years

The time $t$ is 3 months. Since there are 12 months in a year, $t=\frac{3}{12}=0.25$ years.

Step4: Identify the principal amount

The principal amount $P = 3000$.

Step5: Calculate the interest penalty

Substitute $P = 3000$, $r = 0.084$, and $t = 0.25$ into the simple - interest formula $I=Prt$. $I=3000\times0.084\times0.25$ $I = 3000\times0.021$ $I = 63.00$

Answer:

$63.00$