Mr Wilkerson bought some Nigerian government bo... - SS3 Mathematics Financial Arithmetic Question
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?
A
N4,000,000
B
N2,000,000
C
N4,500,000
D
N2,500,000
correct option: c
\[Bond\ interest\ (coupon) = \ 2500000 \times 0.08 \times 10 = N2,000,000\]
\(Maturity\ value = N2,500,000 + N2,000,000 = N4,500,000\)
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