SOLUTION: A corporate bond paying $1,000 after 24 weeks earns 0.03% simple interest per week. How much did it cost to buy?
Algebra.Com
Question 1108006: A corporate bond paying $1,000 after 24 weeks earns 0.03% simple interest per week. How much did it cost to buy?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A corporate bond paying $1,000 after 24 weeks earns 0.03% simple interest per week. How much did it cost to buy?
-------
A(t) = P(1+r*t)
----
1000 = P(1+0.0003*24)
-----
1000 = P*1.0072
-----
P = 1000/1.0072
P = $992.85 (cost)
------------------
Cheers,
Stan H.
---------
RELATED QUESTIONS
Compute the specified quantity.
A corporate bond paying $4,000 after 36 weeks earns... (answered by ikleyn)
Compute the specified quantity.
A corporate bond paying $4,000 after 36 weeks earns... (answered by ikleyn)
Investments Compute the specified quantity.
A corporate bond paying $4,000 after 36... (answered by ikleyn)
A $400 bond earns simple interest. After how many years will it earn $72 in... (answered by rfer,macston)
if jake had 5,000 to invest and he put part of it an a cd paying 5% interest and the rest (answered by checkley77)
A person wishes to deposit $5,000 per year in a savings account which earns interest of 8 (answered by ikleyn)
Dina had $10,000 to invest. She invested part of it in a savings account that pays 4%... (answered by solver91311)
A total of $15,000 is invested in two corporate bonds that pay 5% and 7% simple annual... (answered by checkley77)
A total of $15,000 is invested in two corporate bonds that pay 5% and 7% simple annual... (answered by mananth)