Dave invests in a bond that yields 3. 50% annual effective for 10 years. The bond pays coupons at a rate of 3. 50%, payable semi
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Answer:
I drew the production possibilities frontier curve for both nations, A and B, and attached it.
Explanation:
The amount lost by the person as interest over five years is $65
Explanation:
Given information's are
Amount = $300
years = Five years
Interest rate = 4 percent
If that person deposits $300 in to a saving account which gives 4% interest per year will get $365 after completion of five year period as follows..,
Usually bank follows compound interest method for five years holding of deposits in the savings accounts.The compound interest formula is ((P×(1+i)^n) - P),
where
P is the principal,
i is the annual interest rate, and
n is the number of periods
Interest = $300 ×(1+0.04)5 - $300 = $65
So.,the amount lost by the person as interest over five years is $65