2. A company that manufactures general-purpose transducers invested $2million 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 based on(a) simple interest and (b) compound interest?

Given: Principal, P = $2 Time, T = 4 years Final value = $2.8 million

Answered: 2. A company that manufactures…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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2. 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 based on (a) simple interest and (b) compound interest?