A 8-year bond costs $10,000 and will pay a total of $2,400 in interest over its lifetime. What is its annual interest rate

Name: A 8-year bond costs $10,000 and will pay a total of $2,400 in interest over its lifetime. What is its annual interest rate
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The total interest paid over the lifetime of the bond is $2,400. To find the annual interest rate, divide the total interest by the number of years and then by the initial cost: $ \frac{2400}{8} = 300 $ per year, and $ \frac{300}{10000} = 0.03 $ or 3%.

A 8-Year Bond Costs $10,000 and Will Pay a Total r=1.24%r = 1.24 \%r=1.24%

A 8-Year Bond Costs $10,000 and Will Pay a Total $r = 1.24 \%$