Thursday

January 29, 2015

January 29, 2015

Posted by **Name** on Tuesday, October 25, 2011 at 8:37pm.

kelsie has an $800 savings bond which she has had for 2 1/2 years. The bond pays simple interest at the rate of 3.8% per year. If kelsie cashes the bond, what amount will she receive?

- Math -
**Steve**, Wednesday, October 26, 2011 at 5:31am800 * 1.038

^{2.5}

= 800 * 1.0977

= 878.16

- Math -
**Steve**, Wednesday, October 26, 2011 at 5:33amOops. That was compound interest.

Simple interest pays .038*800 = 30.40 each year

SO, after 2.5 years, she has earned 2.5*30.40 = 76.00 in interest.

**Answer this Question**

**Related Questions**

Math - If you buy a $1395 savings bond that pays 4.3% annual simple interest. ...

Math - Suppose you buy a $1395 savings bond that pays 4.3% annual simple ...

bond valuation - Bond valuation The Garraty Company has two bond issues ...

bond valuation - Bond valuation The Garraty Company has two bond issues ...

Economics - Isabella buys a $1,000 bond that matures in 10 years (that is, she ...

College alerbra - Scott invested a total of $9500 at two separate banks. One ...

Finance - Heinz Corporation bonds carry a coupon of 8% and will mature in 5 ...

Finance - Heinz Corporation bonds carry a coupon of 8% and will mature in 5 ...

math - jack invested $4000 in two accounts. one pays simple interest at the rate...

Math - The Garraty company has two bond issues outstanding. Both bonds pa $100 ...