Query regarding invest returns on 5 year bond?
If i invest a 1000 pounds in a 5 year fixed bond and it gurantees a net return of 4per cent a year at the end of the 5 years how much will ihave made assuming allincome is reivested
Answer
1216.65 poundsto determine this yourself, take the principal (p) times the annual interest rate (r) raised to the number of years you wanna hold the investment (t):p * r^t(you only raise r to the t, not p*r)
