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3 years ago

The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.)

Business

2 answers:

Agata [3.3K]3 years ago

7 0

Answer:

Results are below.

Explanation:

Giving the following information:

Initial investment (PV)= $7,500

Interest rate= 0.06/360= 0.00017 daily

Number of periods= 90 days

To calculate the interest earned, we need to use the following formula:

I= [PV*(1+i)^n] - PV

I= [7,500*(1.00017^90)] - 7,500

I= $115.62

ICE Princess25 [194]3 years ago

6 0

Answer:

$112.50

Explanation:

Amount X Rate X Time =

(Principal of the note x Annual Interest Rate x Time expressed in fraction of year (360 days using the "banker's rule") = Interest)

$7,500 x 0.06 = 450

450 x 90 / 360 = $112.50

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julia-pushkina [17]

Answer:

a. The answer is: $1,008.40

b. The bond's YTM is 3.343%

c. The current yield is 3.826%

Explanation:

a. Bond price formula: ∑(C* / (1+YTM) $n$ )

The price of the bond Intro A with i=1,2...10 is:

∑($1,000 x 3.4% / (1 + 3.3%) $i$ ) = $1,008.40

b. The price of the corporate bond which has 22 years to maturity is: $1,202.20

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[Annual Interest Payment + ((Face Value – Current Price) / (Years to Maturity))] / ( ( Face Value + Current Price ) / 2 )

= [$1,000 x 4.6% + (($1,000 - $1,202.20) / 22)] / (($1,000 + $1,202.20) /2)

= 3.343%

c. The bond's current yield is:

Annual Interest Payment / Current Price = $46 / $1,202.2 = 3.826%

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3 years ago

The slope of the demand for loanable funds curve represents the...

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Answer: c. negative relation between the real interest rate and saving.

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Answer:

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