14) Barkley Charles has a 4-year CD at Bank of the Bayou for $34,000.00 that earns3.2% interest compounded monthly. Barkley's CD has a penalty of 8 months ofinterest.a. If Barkley leaves his money in the CD for the entire term of 4-years, determinethe amount owed as a penalty.b. If Barkley leaves his money in the CD for the entire term of 4-years, determineand the amount of money he will receive.

Penalty =0 After 4 years, he will receive $38,642.39 from the CD.Explanation:Step 1:If he leaves the…

Answered: 14) Barkley Charles has a 4-year CD at…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Vinu
Bozo borrowed $15,000 from Ernie due in 5 years at 6% compounded monthly. Immediately after the debt is contracted, Ernie sells the note to Max for an amount based on 5% compounded monthly. How much does Ernie receive?
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