1.42 A company that manufactures general- purpose transducers invested $2 million 4 years ago in high-yield junk bonds. If the bonds are now worth $2.8 million, what rate of return per year did the company make on the basis of (a) simple interest, and (b) compound interest? (c) What is the spreadsheet function to find the answer for compound interest?
1.42 A company that manufactures general- purpose transducers invested $2 million 4 years ago in high-yield junk bonds. If the bonds are now worth $2.8 million, what rate of return per year did the company make on the basis of (a) simple interest, and (b) compound interest? (c) What is the spreadsheet function to find the answer for compound interest?
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Question # 1.42 (A & B)
Transcribed Image Text:8:02
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1.42
1.43
AA
2
9,90
0
3 B C 2000 D
900
MARR and Opportunity Cost
Aa
2000
A company that manufactures general-
purpose transducers invested $2 million
4 years ago in high-yield junk bonds. If
the bonds are now worth $2.8 million,
what rate of return per year did the
company make on the basis of (a)
simple interest, and (b) compound
interest? (c) What is the spreadsheet
function to find the answer for
compound interest?
Identify the following as either equity or
debt financing: bonds, stock sales,
retained earnings, venture capital, short
term loan, capital advance from friend,
cash on hand, credit card, home equity
loan.
eader-ui.prod.mheducation.com Ć
Expert Solution
Step 1
Given:-
The amount for the investment = $2 million
The number of years for the investment - 4
The worth of the bonds now = $2.8 million
To determine:-
The rate of return per year company make on the basis of
a) Simple interest
b) Compound interest
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