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?
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A(t) = P(1+r*t)
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1000 = P(1+0.0003*24)
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1000 = P*1.0072
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P = 1000/1.0072
P = $992.85 (cost)
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Cheers,
Stan H.
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