SOLUTION: Investments Compute the specified quantity. A corporate bond paying $4,000 after 36 weeks earns 0.04% simple interest per week. How much did it cost to buy? (Round your answer t

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Question 1179799: Investments Compute the specified quantity.
A corporate bond paying $4,000 after 36 weeks earns 0.04% simple interest per week. How much did it cost to buy? (Round your answer to the nearest cent.)
Answer by ikleyn(52852) About Me  (Show Source):
You can put this solution on YOUR website!
.
Compute the specified quantity.
A corporate bond paying $4,000 after 36 weeks earns 0.04% simple interest
per week. How much did it cost to buy? (Round your answer to the nearest cent.)
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Let x be its cost to buy now.


From the problem, you have this equation

    4000 = X*(1+0.0004*36),


or, which is the same,  

    4000 = X*1.0144.


From the last equation, you find the cost to buy now

    X = 4000%2F1.0144 = 3943.22  dollars.    ANSWER


CHECK.  3943.22 + 3943.22*0.0004*36 = 4000.002.   ! correct !

Solved.

You may buy cheaper - then you will have a profit.

If you buy for more expensive price, you will lose.