Question

3500 to purchase a government bonds

Pays 4.89% annual simple interest.

How much will you have in 3 years?

Answer 1

4013.45

Explanation:

Given,

Purchased amount of the bond, P = 3500,

Annual rate of simple interest, r = 4.89% = 0.0489,

Time ( in years ), t = 3,

Since, the total amount of a bond that earns simple interest is,

`A=P(1+r* t)`

By substituting values,

The amount of the bond would be,

`=3500(1+0.0489* 3)`

`=3500(1.1467)`

`=4013.45`