Ask Question
18 October, 06:37

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

+1
Answers (1)
  1. 18 October, 06:43
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “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 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers