Question

If you were to buy a municipal bond for $100 and it returned 1% per year for four years how much interest would you have after four years?
$100

$4

$40

$400

Answer 1

Answer:

$4

Explanation:

Every year, the bond will make a year of 1% of 100.

1% of $100 is equal to

=1/100 x $100

=0.01 x 100

=$1

In four years, the bond will have made $1 X 4

=$4 dollars