Question

3500 to purchase a government bonds

Answer 1

Answer:

4013.45

Step-by-step explanation:

Given,

Purchased amount of the bond, P = 3500,

Annual rate of simple interest, r = 4.89% = 0.0489,

Time ( in years ), t = 3,

Since, the total amount of a bond that earns simple interest is,

$A=P(1+r\times t)$

By substituting values,

The amount of the bond would be,

$=3500(1+0.0489\times 3)$

$=3500(1.1467)$

$=4013.45$