Concept explainers
To find: The bond fund worth at maturity, the effective rate of interest, and the time requires to double the bond value.
Answer to Problem 90RE
The bond fund worth at maturity, the effective rate of interest, and the time requires to double the bond value are
Explanation of Solution
Given information:
The initial cost of the bond is
The bond fund worth at maturityis calculated as,
The effective rate of interest is calculated as,
The time required to double the bond worth is calculated as,
Simplify further,
Thus, the bond fund worth at maturity, the effective rate of interest, and the time requires to double the bond value are
Chapter 5 Solutions
Precalculus
Additional Math Textbook Solutions
Thomas' Calculus: Early Transcendentals (14th Edition)
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