• Before the COVID-19 pandemic, banks were offering decent Certificate of Deposit rates. It is always best to shop around for the banks with the highest interest rates by visiting their website or speaking with an agent. Recently, interest rates have usually varied from 1% to 4% with a minimum deposit that can range from $500 to $10,000. From personal experience, credit union often offer the highest rates, and at one time, a local credit union here in the Last Vegas Valley advertised these rates found below. The interest is compounded daily.

Minimum Deposit	Term Length	Interest Rate
$10,000	9 months	4%
$10,000	19 months	5.5%
$10,000	29 months	5.5%

• Withdrawals made after the first 7 days of the account opening are subject to an early withdrawal fee as defined below. Early withdrawal fees typically are calculated using simple interest, so although the interest you receive will be compounded, the penalty will be calculated as simple interest.

Original CD Term Length	Penalty
Terms 3 months or less	1 month's interest
Terms 3 months through 12 months	3 month's interest
Terms 12 months through 24 months	6 month's interest
Terms over 24 months	12 month's interest

• Here is a reminder of some formulas for calculating compound interest. You may need to review the interst section to properly utilize these formulas.

Q1: You invest $13000 in a 9-month CD account. (a) How much money will be in the account if you let the account fully mature? Round your answer to the nearest cent. (b) Suppose you pull your money out of the account after 8 months. How much will you withdraw after penalties? Round your answer to the nearest cent. Careful! The account will only have accrued 8 months of interest instead of the entire 9!

Q2: You invest $13000 in a 19-month CD account. (a) How much money will be in the account if you let the account fully mature? Round your answer to the nearest cent. (b) Suppose you pull your money out of the account after 12 months. How much will you withdraw after penalties? Round your answer to the nearest cent.

Q3: You invest $13000 in a 29-month CD account. (a) How much money will be in the account if you let the account fully mature? Round your answer to the nearest cent. (b) Suppose you pull your money out of the account after 26 months. How much will you withdraw after penalties? Round your answer to the nearest cent.

Q4: You invest some money in a 9-month CD account. How much does your initial investment need to be if you would like to have $34000 at the end of the 9 months? Round your answer to the nearest cent.

Q5: You invest some money in a 19-month CD account. How much does your initial investment need to be if you would like to have $34000 at the end of the 19 months? Round your answer to the nearest cent.

Q6: You invest some money in a 29-month CD account. How much does your initial investment need to be if you would like to have $34000 at the end of the 29 months? Round your answer to the nearest cent.