Answer:
The anual interest rate on this bond is 7.6%.
Step-by-step explanation:
The total amount to be invested per bond is 25,000.00 that will be 100% for us, while the return for this investment is 1,900.00. We need to calculate how many percentages the return is related to the amount invested. In order to do that we can use the rule of three as stated bellow:
25,000.00 -> 100%
1,900.00 -> x %
25,000.00*x = 1,900.00*100
25,000*x = 190,000
x = 190,000/25,000 = 7.6 %
The anual interest rate on this bond is 7.6%.
