document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=998971>Question 998971</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A bond with a face value of $10,000 in ten years was purchased for 5,988. What is the simple interest rate offered to the bond? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #616654 by </B><A HREF=/tutors/aboutme.mpl?userid=addingup><B>addingup(3677)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=addingup><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=addingup><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=616654\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 10,000-5,988= 4,012 is the interest<BR>\n" );
document.write( "Time 10 years<BR>\n" );
document.write( "Now apply the formula for interest:<BR>\n" );
document.write( "I= PRT (Interest = Principal*rate*time)Isolate rate, divide both sides by PT:<BR>\n" );
document.write( "I/PT= r Plug in the numbers:<BR>\n" );
document.write( "4,012/5,988*10= r<BR>\n" );
document.write( "4,012/59,880= r<BR>\n" );
document.write( "0.067= r Multiply * 100 to get percent:<BR>\n" );
document.write( "%r = 6.7%<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );