John Bought an Inflation-Indexed Security for $10,000 in January 2014

Multiple Choice

John bought an inflation-indexed security for $10,000 in January 2014.The security promises an annual interest rate of 5 percent and makes payments twice a year.If the value of the inflation index in January 2014 was 106 and its value in July 2014 was 105, John will receive an interest income of______ .

A) ?$504.76
B) ?$226.40
C) ?$182.72
D) $368.56