Bill purchases a bond for $1,200. It pays 7% simple annual interest and matures in 8 years. How much interest will Bill earn af

Question

Bill purchases a bond for $1,200. It pays 7% simple annual interest and matures in 8 years. How much interest will Bill earn
after the bond reaches maturity?

in progress 0
Gerda 3 months 2021-09-01T07:53:32+00:00 1 Answers 0 views 0

Answers ( )

    0
    2021-09-01T07:55:11+00:00

    Answer:

    672

    Step-by-step explanation:

    I’m going to assume that this is a zero-coupon bond

    simple interest is as follows

    PV(1+it)

    we have

    1200(1+.07*8)

    1200*1.56=1872

    This is the accumulated value

    to find the interest earned we use the following equation

    AV-PV

    we have

    1872-1200=672

Leave an answer

Browse

Giải phương trình 1 ẩn: x + 2 - 2(x + 1) = -x . Hỏi x = ? ( )