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Assume linda has owned an ee bond for 3 years. The fixed rate of interest is 4% and the current value of the bond is $4500. If linda were to cash in the bond tomorrow, how much interest will she lose (approximately) as a penalty?.

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tutorAnne

Linda will lose $180 interest as a penalty if she cash in the bond tomorrow.

What is an EE Bond?

An EE savings bond is rfefereed to as low-risk savings bonds  that earn interest until one cashes out or double for a 30-year term. if one cashes out before the stipulated period of time, no interest will be awarded.

For Linda with

  • Face Value of the bond = $4500
  • The fixed rate of interest is r = 4%

If Linda were to cash in the bond tomorrow, it means she will lose

Interest  = Face Value  x interest rate  = 4500 X 4%=$180

Learn more on Solving interest on ee bonds :https://brainly.com/question/15184485?r

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