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Dafna11 [192]
2 years ago
10

Kent bought a $2,000, 20-year U.S. Treasury bond that paid six percent annual yield when he was 22. How much would that bond be

worth 20 years later when it matured?
Business
1 answer:
Alenkasestr [34]2 years ago
3 0

The bond worth $ 4400 at the time of the bond maturity.

<u>Explanation:</u>

Principal amount = $ 2000

Rate of Interest = 6%

Number of years = 20

SI = Pnr

   = 2000 × 6  × 20 / 100

  = $ 2400

The bond worth when it was matured is $ 2000 + $ 2400 = $ 4400

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