Jimmy purchased a government bond which has maturity value of $2500 after 9 months

at 11 % simple interest. How much should he pay for this bond?

Answer:$2706.25

Step-by-step explanation:

Principal (t) = $2500

Time (t) = 9months=9/12=0.75year

Rate (r) = 11%

Simple interest (si) = ?

Si = (pxrxt) / 100

Si = (2500x11x0.75) / 100

Si=20625/100

Si=$206.25

Total amount=p + si

Total amount=2500+206.25

Total amount=$2706.25

Answer: he should pay $23095 for this bond.

Step-by-step explanation:

We would apply the formula for determining simple interest which is expressed as

I = PRT/100

Where

I represents interest paid on the bond purchased.

P represents the principal or amount of bond purchased.

R represents interest rate

T represents the duration of the bond in years.

From the given information,

R = 11%

T = 9 months = 9/12 = 0.75

I = 25000 - P

Therefore

25000 - P = (P * 11 * 0.75) / 100

25000 - P = 8.25P/100 = 0.0825P

P + 0.0825P = 25000

1.0825P = 25000

P = 25000/1.0825

P = $23095