Answer: 1.5%
Step-by-step explanation:
The Pure Interest Rate refers to the rate in a theoretical market where there is no risk as economic conditions can be predicted with certainty.
Sadly, uncertainty will always exist but there are rates that are close enough to the Pure interest rate such as US Government Security rates.
The United States has never defaulted on a debt payment in the modern era and as such is known to offer the least risky rates in the world. The rate on US Securities can therefore be considered as close as possible to the pure interest rate.
Given the rates in the question, the Pure Interest rate would be the 20-year Treasury bond rate of 1.5%.
Answer:
24/18=1.333
20/16=1.25
6/4=1.5 (the ratio to achieve9
1.333 is more close to 1.5 than 1.25 (11% difference compared to 17%)
Step-by-step explanation:
Answer:
Original Value= $361.21
Step-by-step explanation:
Giving the following information:
The value of the savings bond increases by 3% each year. One year after it was purchased, the value of the savings bond was $515.
<u>To calculate the original value of the bond, we need to use the following formula:</u>
OV= PV/(1+i)^n
OV= original value
PV= present value
i= increase rate
n= number of months
OV= 515 / (1,03^12)
OV= $361.21
Answer:
1. -3
2. -12
3. 20
4. -15
5. 6
6. -15w+5
7. 10
8. C<-26
9.p> -40
10. P> 16
Step-by-step explanation:
~ -9p -17 = 10
-9p = 27
P = -3
~ x/4 -5 = -8
x/4 = -3
x = -12
~ p/5 +6 =10
p/5 = 4
p = 20
~ -2(m-30) =-6m
-2m+60=-6m
4m = -60
m = -15
~ 3n +2=8+2n
n = 6
Using exponential function concepts, it is found that it represents a decay of 0.9%.
<h3>What is an exponential function?</h3>
A decaying exponential function is <em>modeled </em>by:
In which:
- A(0) is the initial value.
- r is the decay rate, as a decimal.
In this problem, the function is:
Hence:
Thus, it represents a decay of 0.9%.
You can learn more about exponential function concepts at brainly.com/question/25537936
