Problem Solving (PS) | Re: Jerry purchased a 1-year $5,000 bond that paid an annual

Here P = 5000
r=4%
time = 1 year
As the amount is compounded annually n = 2

Compound interest formula = \(A = p* (1+\frac{r}{n*100}) ^n^t\)
\(A = 5000* (1+\frac{4}{2*100}) ^(2*1)\)
A= 5202

So Interest earned = 5202 - 5000 = 202

Answer: D

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