Question

Twelve months ago, you purchased 10-year Treasury notes with a face value of $1,000. The interest rate is 2.45 percent. What is the dollar amount of interest you will receive each year for each note? (Round your answer to 2 decimal places.)

Answer 1

$24.50

Explanation:

Relevant data provided

Face value = $1,000

Interest rate = 3.45%

Based on the above information

The computation of the dollar amount of interest is shown below:-

Interest per year = Face value × Interest rate

= $1,000 × 2.45%

= $24.50

Therefore for computing the interest per year we simply applied the above formula.