Given:
For the annual payment:
Principal (P) = $13,000
Time, T = 1
Rate, R = 2.95% = 0.0295
Let's find the annual interest rate using the interest formula.
[tex]\text{Interest}=P\times R\times T[/tex]We have:
[tex]\begin{gathered} \text{Interest}=13000\times0.0295\times1 \\ \\ \text{Interest= \$383.50} \end{gathered}[/tex]The annual interest to be paid to the bond holder is $383.50
To find the total of the interest payments to the bond holder, multiply the annual interest by the maturity term.
We have:
Total interest = Annual interest x Maturity term
Where:
Maturity term = 6 years
Hance, we have:
Total interest = $383.50 x 6 = $2,301
Therefore, the total of the interest paymemnts paid to the bond holder is $2,301
ANSWER:
$2,301
