Answer:
The amount worth $133 for the prior withdrawal
Explanation:
The amount of annual interest is computed as:
Annual Interest = Withdrawal Amount × Percentage of Certificate Deposit (CD)
where
Withdrawal Amount is $20,000
Percentage of Certificate Deposit (CD) is 4%
Putting the values above:
Annual Interest = $20,000 × 4%
= $800
The amount of Penalty is computed as:
Penalty amount = 2 months of Annual Interest
= 2/ 12 × $800
= $133.33 or $133
