Answered: A 3 year bond costs $3,000 and will pay…

A 3 year bond costs $3,000 and will pay a total of $200 interest over its lifetime. What is its annual interest rate r (as a percent)? (Round your answer to three decimal places.)

Intermediate Algebra

10th Edition

ISBN:9781285195728

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter2: Equations, Inequalities, And Problem Solving

Section2.S: Summary

Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?

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Question

A 3 year bond costs $3,000 and will pay a total of $200 interest over its lifetime. What is its annual interest rate r (as a percent)? (Round your answer to three decimal places.)

Expert Solution