C. Caroline decides on a college after opening the 3 1/2 -year CD, and the college needs the first tuition payment a month before the CD matures.
Caroline must withdraw money from the CD early, after 3 years and 5
months. She faces two penalties. First, the interest rate for the last 5 months
of the CD was lowered to 0.5%. Additionally, there was a $250 penalty.
Find the interest on the last 5 months of the CD. Round to the nearest cent.