Neil Invested $10,000 in a Certificate of Deposit Earning 9

question 23

Multiple Choice

Neil invested $10,000 in a certificate of deposit earning 9% per year.Unfortunately,he needed to withdraw it before the maturity date.If the penalty was two months of interest,what was his total penalty?

• A) $0
• B) $9
• C) $75
• D) $150
• E) $900

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Definitions:

Futures Price

The agreed-upon price for a financial instrument or commodity to be delivered and paid for at a future date.

Orange Juice

A liquid extract of the orange tree fruit, consumed as a beverage or used in culinary dishes and as a commodity traded on futures markets.

Futures Contracts

Standardized legal agreements to buy or sell a financial instrument or physical commodity at a predetermined future date and price.

Profit (Loss)

The financial gain or loss resulting from revenue generated minus the expenses of operating the business.