Since we are given the annual interest, we are to divide it by the interest period, which is quarterly, or every 3 months. This is done by dividing 3% by 4, which is (0.03/4 = 0.0075). Since the withdrawal fee is 3 months' interest, then we simply have to multiply 0.0075 to the principal amount. This is shown below:
$250 * 0.0075 = 1.875 = 1.88
Therefore, the early withdrawal fee is $1.88.
