James McCulloch purchased a 30-year U.S. Treasury bond four years ago and paid the face value of $3,000. The bond paid 3.225 percent annual interest. Four years later he sold the bond for $3,025. a. What is the annual interest amount for the bond? b. What is the total interest Mr. McCulloch earned during the four-year period?
James McCulloch purchased a 30-year U.S. Treasury bond four years ago and paid the face value of $3,000. The bond paid 3.225 percent annual interest. Four years later he sold the bond for $3,025. a. What is the annual interest amount for the bond? b. What is the total interest Mr. McCulloch earned during the four-year period?
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 25DQ
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James mcculloch purchased a...Accounting question
Transcribed Image Text:James McCulloch purchased a 30-year U.S. Treasury bond four
years ago and paid the face value of $3,000. The bond paid
3.225 percent annual interest. Four years later he sold the
bond for $3,025.
a. What is the annual interest amount for the bond?
b. What is the total interest Mr. McCulloch earned during the
four-year period?
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