8) You obtain a $1000 treasure note with a 6% annual rate, paid semi-annually, with a maturity in 5 years. How much interest will you earn?

Answer rating: 100% (QA)

To calculate the interest earned on a 1000 treasure note with a 6 annual rate paid semiannually over a 5year maturity we can use the formula for compound interest A P 1 rnnt Where A is the final amount including interest P is the principal amount initial investment r is the annual interest rate as a decimal n is the number of compounding periods per year t is the time in years In this case the principal amount is 1000 the annual interest rate is 6 or 006 as a decimal the compounding is semiannual ... View the full answer