Respuesta :

MissPhiladelphia
Given:
5 bonds of face value of 1,000 that paid 5% annual interest rate.

5 bonds x 1,000 = 5,000
5,000 x 5% x 1 year = 250

The total annual interest income of James is 250. Each bond earns 50 per annum.

Answer:

The total annual interest income of James is $250.

Step-by-step explanation:

James purchased five bonds of face value of $1,000

So, total value of 5 bonds is = [tex]5\times1000=5000[/tex] dollars

These bonds paid 5% annual interest rate.

So, interest becomes = [tex]0.05\times5000=250[/tex] dollars

Hence, the total annual interest income of James is $250.

Otras preguntas