Question

On July 1, 2017, Markie purchased a ten-year $10,000 bond. The bond has a stated interest rate of 4%, payable annually on July 1. On June 2, 2018, 336 days from the last interest payment, Markie sold the bond. The selling price includes how much accrued interest?(A) $32(B) $368(C) $400(D) $768

Answer 1

Interest will be $368

So option (B) will be correct answer

Step-by-step explanation:

We have given Markle purchased a ten year $10000 bond

So price of bond = $10000

Rate of interest = 4 %

Time = 336 days

We know that 1 year = 365 days

So
`336days=(336)/(365)=0.9205year`

So interest will be equal to
`interest=(price* rate\ of\ interest* time)/(100)=(10000* 4* 0.9205)/(100)=$368`

So option (B) will be correct answer