Answer:
After 7 years and 5 months.
Step-by-step explanation:
Let x represent number of years.
We have been given that a certain company recently sold five-year $1000 bonds with an annual yield of 9.75%.
We can see that the value of bond is increasing exponentially, so we will use exponential growth formula to solve our given problem.
, where,
y = Final value,
a = Initial value,
r = Rate in decimal form,
x = Time

Substituting given values:


Since we need the selling price to be twice the original price, so we will substitute
in above equation as:



Switch sides:

Take natural log of both sides:

Applying rule
:





Since x represents time in years, so we need to convert decimal part into months by multiplying .4504 by 12 as 1 year equals 12 months.
7 years and 12*0.4504023 months = 7 years 5.4 months = 7 years 5 months
Therefore, after 7 years and 5 months the company could sold the bonds for twice their original price.
D=an-am/n-m
d=a64-a3/64-3
d=3725-126/61=59
a3=a1+2d
126=a1+118
a1=8
Answer: it’s the third graph