Question

Sarah has a $2000 bond with a 5% coupon. How much interest will Sarah recieve for this bond every 6 months? A: $25 B: $75 C: $100 D:$50

Answer 1

The formula is
I=prt
I interest received?
P 2000
R 0.05
T 6/12

I=2,000×0.05×(6÷12)
I=50

It's d

Answer 2

Hence, the interset earned by her:

=$ 50

Hence, option D is true.

Explanation:

It is given that:

Sarah has a $2000 bond with a 5% coupon.

Now we are asked to find the interest that she will receive after 6 months.

i.e. after 6/12=1/2 year.

Here we have:

P=$ 2000

R=5%

T=1/2 year.

Hence, interest(I) earned by her:

`I=(P* R* T)/(100)\\\\I=(2000* 5* (1)/(2))/(100)\\\\I=50`

Hence, option: D is true.

The interest earned by her is $ 50.