Walter bought a $4,000.00, 11-month certificate of deposit (CD) that would earn 4% annual simple interest. When Walter's car broke down he decided that he needed to cash his CD out. Rather than pay the penality to the back, his friend agreed to buy the CD from Walter and would cash it upon maturity and receive the full value of the CD. Five months before the CD was due to mature, Walter's friend bought the CD.
The value of the CD when it matures is . (Round to the nearest cent, if needed.)
If their agreement allowed the friend to earn 5% annual simple interest return for buying the CD, how much did Walter receive when he sold the CD?
Walter receive when he sold the CD. (Round to the nearest cent, if needed.)
The value of the CD when it matures is . (Round to the nearest cent, if needed.)
If their agreement allowed the friend to earn 5% annual simple interest return for buying the CD, how much did Walter receive when he sold the CD?
Walter receive when he sold the CD. (Round to the nearest cent, if needed.)