1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IrinaK [193]
3 years ago
6

Two bonds are available on the market as follows: Bond 1: Face value $250, 5 years to maturity at a (simple) interest rate of 5%

. Bond 2: Face value $350, 3 years to maturity at a (simple) interest rate of r. Given that both bonds yield the same interest to maturity, calculate r.
Mathematics
1 answer:
tester [92]3 years ago
3 0

The value of r is 5.95%

Step-by-step explanation:

The formula of the simple interest is I = P r t, where

  • P is the initial amount of money
  • r is the interest rate in decimal
  • t is the time

Bond 1:

∵ The face value is $250

∴ P = 250

∵ The value is in the bond for 5 years

∴ t = 5

∵ The simple interest rate is 5%

∴ r = 5% = 5 ÷ 100 = 0.05

∵ I = P r t

- Substitute the values of P, r and t in the rule

∴ I = (250)(0.05)(5) = 62.5

∴ The interest of Bond 1 is $62.5

Bond 2:

∵ The face value is $350

∴ P = 350

∵ The value is in the bond for 3 years

∴ t = 3

∵ The simple interest rate is r

∵ I = P r t

- Substitute the values of P and t in the rule

∴ I = (350)(r)(3) = 1050 r

∴ The interest of Bond 2 is 1050 r

∵ The both bonds yield the same interest to maturity

- Equate the interests of bonds 1 and 2

∵ 1050 r = 62.5

- Divide both sides by 1050

∴ r = 0.0595

- Multiply it by 100% to change it to percentage

∵ r = 0.0595 × 100% = 5.95%

∴ r = 5.95%

The value of r is 5.95%

Learn more:

You can learn more about interest in brainly.com/question/11149751

#LearnwithBrainly

You might be interested in
Berto has $12 to put gas in his car. If gas costs $3.75 per gallon, which ordered pair relating number of gallons of gas, x, to
Salsk061 [2.6K]

Answer:

If gas costs $3.75 per gallon and Berto has $12, then he can purchase 12/3.75 gallons. This is approximately 3.2 gallons. So the coordinate on this line would be (3.2, 12).

Actually... It's from web

3 0
2 years ago
Read 2 more answers
If p and q are both true, then which of the following statements has the same truth-value as ~p → q?
olganol [36]

If p and q are both true, then

\neg p \implies q

is an implication of the form

F \implies T

which is true, because every implication starting with false is true, i.e.

F \implies T = T,\quad F \implies F = T

So, we're looking for an expression evaluating to true. Let's see what we have:

A) is an AND proposition. Logical AND is true only if both parts are true. So, you have

\neg P \land \neg Q = F \land F = F

So it's not the right option.

B) is an OR proposition. Logical OR is true whenever one of the two parts is true. So, you have

\neg P \lor\neg Q = F \lor F = F

So it's not the right option.

C) is again an AND proposition. You have

P \land \neg Q = T \land F = F

So this is not the right option.

D) Finally, the last one is again an implication, and again it starts with false:

\neg Q \implies P = F \implies T = T

So this is true, and thus is the correct option.

8 0
3 years ago
Write the fraction in lowest terms.<br> 14/37
eimsori [14]
That’s as low as it goes So that’s ur answer
14/37
5 0
3 years ago
Calcular x en: los datos q faltan
Taya2010 [7]
Answer:

x = 13

Step-by-step explanation:

No se exactamente como decir esto porque yo ayudo la majoria de los usuario en ingles pero hay que usar un método para describir a x

Un método que se llama Pythagorean theorem

Pythagorean theorem: a^2 + b^2 = c^2 donde a^2 = 5 b^2 = 12 y c^2 = x

Entonces…

5^2 + 12^2 = c^2

Nota: podemos ver que esto esta bien porque el sum de los dos lados suma el mas largo.

Ahora

25 + 144 = c^2

c^2 = 169

Pero eso no puede ser la respuesta porque no tiene sentido a que x sea un lado que mide 169 entonces tenemos que usar sqrt rt

sqrt rt de 169 = 13

x = 13
4 0
3 years ago
5.6 x 5.6 x 6.16 x 6.16
ivann1987 [24]

Answer:

5.6 x 5.6 x 6.16 x 6.16=1190

Step-by-step explanation:

5.6 x 5.6 x 6.16 x 6.16=1189.974016

Rounded up will be 1190.

8 0
3 years ago
Other questions:
  • There are 40 tables in a library, with 30% of them seating 4 people. The tables remaining only seat 2 people. How many seats are
    9·1 answer
  • Solve the system of equations by substitution.<br> x + y = <br> x + 7y = 8
    15·2 answers
  • ok so i have to find the area of this rectangle but the thing is its on a graph and it is slanted and it only gives me the coord
    8·1 answer
  • 10. What is the value of x in this equation?
    8·1 answer
  • The temperature rose by 30°F today write a signed number to represent the temperature change
    15·1 answer
  • Wich describes the number sentence? 8+0=8 A odd+ odd= odd. Identity property of addition c even +even =even d commutative proper
    6·2 answers
  • Write an equation of the line with a slope of 3 and a y-intercept of 4.5.
    14·1 answer
  • HURRY!!!!! Hey guys help me with this PI question. Pi = 3.14<br>Thank you!
    12·1 answer
  • I need helppp pleaseee!! like asap!!!
    12·1 answer
  • Please help! thank you! :)
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!