Answer :

To find the annual interest on a bond, you can use the following formula:

[tex]\[ \text{Annual Interest} = \text{Face Value} \times \text{Interest Rate} \][/tex]

Here are the steps to calculate it:

1. Identify the face value of the bond. In this case, the face value [tex]\( F \)[/tex] is \[tex]$1,000. 2. Determine the annual interest rate. The annual interest rate \( r \) is 8%, which can be written as a decimal for calculation purposes. To convert a percentage to a decimal, divide by 100: \[ r = \frac{8}{100} = 0.08 \] 3. Multiply the face value of the bond by the annual interest rate: \[ \text{Annual Interest} = F \times r = 1000 \times 0.08 \] 4. Perform the multiplication: \[ 1000 \times 0.08 = 80 \] Therefore, the annual interest on the bond is \$[/tex]80.