For the given bond, whose interest rate is provided, find the semiannual interest payment and the
1 answer:
Answer:
The semiannual interest payment is $485.5
The total interest earned over the life of the bond is $10,681
Step-by-step explanation:
The formula of the simple interest is I = Prt, where
- P is the money invested
- r is the interest rate in decimal
- t is the time in years
∵ The bond is $20,000
∴ P = 20,000
∵ First Income Fund 11-year bond at 4.855%
∴ t = 11
∴ r = 4.855%
- Change it to decimal by divide it by 100
∴ r = 4.855 ÷ 100 = 0.04855
∵ The semiannual interest payment = P × r × half a year
∴ The semiannual interest payment = 20,000 × 0.04855 × (1)
∴ The semiannual interest payment = 485.5
The semiannual interest payment is $485.5
∵ I = Prt
- Substitute the values of P, r and t in the formula
∴ I = 20,000(0.04855)(11)
∴ I = 10,681
The total interest earned over the life of the bond is $10,681
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Answer:
25 miles
Step-by-step explanation:
Given: A boat sail 20 miles west of the port and then 15 miles south to an island.
Picture attached.
The distance from port to island could be measured in a straight line. It will form a hypotenous.
∴ we can use Pythogorean theorem to find the distance.
Where, "a" is adjacent= 20 miles and "b" is opposite= 15 miles.
⇒
⇒
⇒
We know .
∴
∴ Distance of Port from the Island is 25 miles.
