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Three years ago, Mark purchased a $5,000, 3% compounded annually, 5-year CD with all interest reinvested. Suppose interest rates on 2-year CDs are now 4%.

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Three years ago, Mark purchased a $5,000, 3% compounded annually, 5-year CD with all interest reinvested. Suppose interest rates on 2-year CDs are now 4%. If there is a 6-month interest penalty on the original principal for early withdrawal, then Mark will in two years from early withdrawal and purchase of the new CD. Gain $9 estion Unsaved Lose $34 Lose $32 Lose $9 Gain $34 Gain $32

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