Question on: SS3 Mathematics - Financial Arithmetic
Mr Wilkerson bought some Nigerian government bonds worth N2,500,000. If the bonds mature after 10 years at an interest rate of 8%, what is the maturity value of his investment?
View related lesson
A
N4,000,000
B
N2,000,000
C
N4,500,000
D
N2,500,000
Ask EduPadi AI for a detailed answer
Correct Option: C
\[Bond\ interest\ (coupon) = \ 2500000 \times 0.08 \times 10 = N2,000,000\]
\(Maturity\ value = N2,500,000 + N2,000,000 = N4,500,000\)
Add your answer
Please share this, thanks!
No responses