Respuesta :
Answer: the interest rate is 3.67%
Step-by-step explanation:
We would apply the formula for determining simple interest which is expressed as
I = PRT/100
Where
I represents interest paid on the bond.
P represents the principal or amount at which you bought the bond.
R represents interest rate on the bond
T represents the duration of the bond in years.
From the information given,
P = 3000
T = 10 years
I = 4100 - 3000 = 1100
Therefore,
1100 = (3000 × R × 10)/100 = 300R
R = 1100/300
R = 3.67%
Answer:
r = 3.17%
The interest rate is 3.17%
Step-by-step explanation:
Applying the compound interest formula.
A = P(1+r)^t
Where;
A = final value of bond
P = Initial value of bond
t = time of investment
r = yearly interest rate.
Making r the subject of formula;
(1+r)^t = A/P
1+r = (A/P)^(1/t)
r = (A/P)^(1/t) - 1 ............1
Given;
A = $4100
P = $3000
t = 10 years
Substituting the values, we have;
r = (4100/3000)^(1/10) - 1
r = 1.0317 - 1
r = 0.0317
r = 3.17%
The interest rate is 3.17%
