Answer:
a. $880.
Explanation:
Bailey bought a bond for $1,000 that promises to pay $110 a year.
The interest rate was 110/1000 * 100 = 11%
This year, $1,000 receives $125 a year= 125/1000 * 100 = 12.5%. So, this year the interest rate now rises to 12.5%.
If Bailey were to sell his (old) bond, the price should be 110/12.5% = 110/0.125 = $880.
False is correct answer.
Hope it helped you.
-Charlie
<h3><u>Question</u><u>:</u><u>-</u></h3>
A man buys a laptop for £540 and sells it for £615. Find his loss or profit.
<h3><u>Answer</u><u>:</u><u>-</u></h3>
The man had a profit of £75
<h3><u>Explanation</u><u>:</u><u>-</u></h3>
Cost price = £540
Selling price = £615
▶️Profit = Selling price - Cost price
▶️Profit = £615 - £540
▶️ Profit = £75