Answer:
Compound interest = Rs 1,575 (Approx.)
Step-by-step explanation:
Given:
Amount invested = R.s 6,500
Rate of interest = 7.5% per annum
Number of year = 3 year
Find:
Amount of compound interest
Computation:
Compound interest = P[(1+r)ⁿ - 1]
Compound interest = 6500[(1+7.5%)³ - 1]
Compound interest = 6500[(1+0.075)³ - 1]
Compound interest = 6500[(1.075)³ - 1]
Compound interest = 6500[1.2423 - 1]
Compound interest = 6500[0.2423]
Compound interest = 1574.95
Compound interest = Rs 1,575 (Approx.)
The discriminant is
which is 0.
Since the discriminant is 0, there is only one real solution.
15.25 divided by 100= 0.1525 times 15 = 2.2875 then round to $2.29 (2.29 is the tip) 2.29 + 15.25 = $17.54 would be the total cost!
Answer:
The semi-annually compounded nominal rate at that time is 7%
Step-by-step explanation:
In order to calculate the semi-annually compounded nominal rate at that time we would have use the following formula:
PV= FV/(1+r)^n
According to the given data we have the following:
PV=$167
FV=$1,000
n=30-year, and strip bond was traded four years after it was issued, hence, n=(30-4)*2 =52
Therefore, 167= $1,000/( 1+r)^52
167/$1,000 =1/(1+r)^52
0.167 =1/(1+r)^52
r =3.50%
Therefore, The semi-annually compounded nominal rate at that time=3.50%*2
The semi-annually compounded nominal rate at that time=7%
The semi-annually compounded nominal rate at that time is 7%
