Question

Megan invested in ten bonds of total face value of $1.000, issued by Zen Corporation. The bonds paid 10 percer semiannual (5% every 6 months) interest till the maturity date, which of the following is the value of interest earned in the first installment on a single bond? A) $50 B) $100 C) $500 D) $90 E) $75

Answer 1

Answer:

$50 is the value of interest earned in the first installment on a single bond

Step-by-step explanation:

Applying Interest earned in the first installment on a single bond ;

= PRT/100

P = $1.000

R = 5%

T = 1

Plugging the values in the equation ;

Interest = 1000 x 5 x 1 /100

= $50, hence option A is the correct one.