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On April 24, 2012, Rebecca purchased a government-guaranteed short-term investment maturing on July 5, 2012. How...

On April 24, 2012, Rebecca purchased a government-guaranteed short-term investment maturing on July 5, 2012.
How much did Rebecca pay for the investment if she will receive $6000 on the maturity date and interest is 2.75%

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Answer #1

Here Future value is $6000 and interest rate is 2.75%

Future value = Present value + ( 2.75% x No of days/365)

6000= Present value + (2.75% x 73/365)Present value

6000 = Present value + 0.55%Present Value

Let Present Value be X

6000 = X+0.0055X

6000= 1.0055X

X = 6000/1.005

=5967.18$

Thus Rebecca purchased goverment bond for $ 5967.18

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