Question

Twelve months ago, you purchased 10-year treasury notes with a face value of $1,000. the interest rate is 2.90 percent. what is the annual dollar amount of interest you will receive each year? (round your answer to 2 decimal places.)

Answer 1

Starting with yr 1 and calculating 2.9% interest per year and compounding it each additional year I get the following amounts; Yr 1=$1029.00, Yr 2=$1058.84, Yr 3 = $1089.55, Yr 4 = $1121.15, Yr 5 = $1153.66, Yr 6 = $1187.11, Yr 7 = $1221.54, Yr 8=$1256.96, Yr 9 = $1293.41 and Yr 10= $1330.92