Snap company issues 10% five year bonds on january 1 of this year, with a par value of 120,000 and semiannual interest payments

Mathematics

1 answer:

mezya [45]3 years ago

4 0

Answer:

Step-by-step explanation:

Using the compound interest formula to get the equivalent amount after 5 years;

A = P(1+r/n)^nt

P is the principal = 120,000

r is the rate = 10% = 0.1

t is the time = 5 years

n is the time of compounding = 1/2 = 0.5(semi annual interest)

Substitute into the formula;

A = 120,000(1+0.1/0.5)^(5)(0.5)

A = 120,000(1+0.2)^2.5

A = 120,000(1.2)^2.5

A = 120,000(1.5774)

A = 189,292.92

Hence the company issue is $189,292.92

You might be interested in

Davis is buying a new car for $21,349.00.He plans to make a down payment of $3,000.00.If he's to make monthly payments of $352 f

nekit [7.7K]

He actually borrowed P=21349-3000=18349 (present value)
Assume the monthly interest is i.
then future value due to loan:
F1=P(1+i)^n=18349(1+i)^(5*12)=18349(1+i)^60
future value from monthly payment of A=352
F2=A((1+i)^n-1)/i=352((1+i)^60-1)/i
Since F1=F2 for the same loan, we have
18349(1+i)^60=352((1+i)^60-1)/i
Simplify notation by defining R=1+i, then
18349(R^60)-352(R^60-1)/(R-1)=0
Simplify further by multiplication by (R-1)
f(R)=18349*R^60*(R-1)-352(R^60-1)=0
Solve for R by trial and error, or by iteration to get R=1.004732
The APR is therefore
12*(1.004732-1)=0.056784, or 5.678% approx.

8 0

2 years ago

someone please answer this but no links because i have a school computer and it blocks the links so please dont send links

Otrada [13]

Answer:

just typed the whole in mathaway.com

Step-by-step explanation:

it's a better app for quadratic equation and you can use it on a school computer

7 0

2 years ago

Directions: Simplify the following monomials.

Ulleksa [173]