What is James Williams' anticipated asset income from his CD balance after the early withdrawal penalty?

To determine James Williams' anticipated asset income from his Certificate of Deposit (CD) balance after applying the early withdrawal penalty, it's important to consider how CD interest accumulation and penalties work.

When a CD has a specified term and interest rate, it generates interest over that period. If James is withdrawing early, he will incur a specific penalty that reduces the overall income earned from the CD. However, the anticipated asset income post-penalty likely means the total interest accrued minus the penalty on that accrued interest.

If the correct answer is $100, this indicates that the total interest earned before penalties were deducted was significantly higher than the penalties themselves. This scenario may suggest that the total interest was around $150, and after deducting the withdrawal penalty of $50, the resulting income would be $100. The specifics would rely on the initial principal, the interest rate, term length, and the penalty structure, which typically involves a certain number of months' interest loss.

In essence, calculating the post-penalty income requires understanding both the gains from the CD and the impact of penalties for early withdrawals. This conclusion reinforces the concept that even after a penalty, the net asset income can still be quite substantial depending on the terms of the investment.