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WINSTONCH [101]
2 years ago
5

Assume Jennifer has owned an EE bond for 4 years. The fixed rate of interest is 10% and the current value of the bond is $4000.

If Jennifer were to cash in the bond tomorrow, how much interest will she lose (approximately) as a penalty
Business
1 answer:
lakkis [162]2 years ago
3 0

Answer:

400

Explanation:

Given:

Face Value of the bond = $4000

The fixed rate of interest is r = 10%

If f Jennifer were not to cash in the bond tomorrow, it means she have the value of $4000  after 4 years. But tomorrow she were to cash, so the interest she lose is:

I = FV*r = 4000*10% = 400

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Explanation:

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