In January 2018, Tammy Purchased a Bond Due in 24

question 6

Essay

In January 2018, Tammy purchased a bond due in 24 months. The cost of the bond is $857 and its maturity value is $1,000. No interest is paid each year, but the compound interest rate on the bond is 8%. Tammy also purchased a Series EE United States Government bond for $558, with a maturity value in 10 years of $1,000. This is the only Series EE bond she has ever owned. The Series EE bond is sold to yield 6% interest. Tammy is 13 years old and has no other source of income. She is claimed as a dependent by her parents. Compute Tammy's gross income from the bond and Series EE bond for 2018.

---

Definitions:

Colonial Assemblies

Legislative bodies established in the American colonies, which represented the interests of the colonists and had the authority to pass laws pertaining to the colony.

Colonial Politics

Refers to the political systems, structures, and dynamics within colonies, often involving the control and governance by an external power.

Transatlantic Slave Trade

The forced transportation of Africans to the Americas to work as slaves from the 16th to the 19th century, a key component of the global slave trade system.