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dalvyx [7]
3 years ago
10

Michelle buys a bond for $5,000. every year that she holds the bond, she'll receive interest payments of $250. the interest rate

on the bond is
a. 2 percent.
b. 5 percent.
c. 40 percent.
d. 20 percent.
Business
1 answer:
RoseWind [281]3 years ago
6 0
This can be solve using the formulaF = P(1 + i)^nwhere F is the future worth of the bondP is the cost of the bondi is the interest raten is the number of years
F = 5000 + 250F = 5250
5250 = 5000( 1 + i)^1solve for ii = 5250/5000 - 1i = 0.05i = 5 %
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