Question

Calculate simple interest Question Two bonds are available on the market as follows: • Bond 1: Face value $250, 5 years to maturity at a simple interest rate of 5% per year. • Bond 2: Face value $350, 3 years to maturity at a simple interest rate of r per year. Given that both bonds yield the same interest at maturity, calculater. Round your answer to the nearest hundredth of a percent. Do NOT round until you have calculated your final answer. Provide your answer below:

Answer 1

Simple Interest Az plitot) eistede Interest I= prt 250 X 0.05 X5 = 350 x3 xr 72 250 X 0.05x5 3x350 r= 0.0595238 r=5.95% paid Interest Iz prt 8000 8 rx 5 = 1200 t 25 P 28000 I = 1200 rz 1200 Sopo X5 r= 0.03 Scanned with CamScanner