You invest 3,000 in a bond paying 9.25% interest. How much interest will u earn this year?

Question

Taylor Chung

Mathematics

16 November, 14:00

You invest 3,000 in a bond paying 9.25% interest. How much interest will u earn this year?

+3

Answers (1)

Know the Answer?

Mikayla Cardenas · Answer 1

Interest is given by A = PiN, where A is the interest, P is the principal or starting amount, i is the interest rate, and N is the term in years.

In this case, the principal is $3000, the interest rate is 0.0925 and the term is 1 year.

∴A = 3000 x 0.0925 x 1 = $277.5