Problem
Should You Withdraw Funds Early? Last year you deposited $1,000 in a five-year CD that paid an APY of 4.2 percent. One year later, interest rates have risen and new fouryear CDs pay 6.5 percent. If you withdraw your deposit early, you will be charged a penalty equal to all the interest you earned in the past year. But then you could open a new CD and earn the higher rate for the next four years. Calculate which choice would result in the greatest return for your savings over the five years. Explain your answer.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.