Edwin R. answered • 07/21/16

Tutor

New to Wyzant
Math Tutoring Only

Formulas:

I=Prt

r=I/Pt

Yearly Income=Interest amount from Treasury Bond+Interest amount from the rest of the investment

I=Prt

r=I/Pt

Yearly Income=Interest amount from Treasury Bond+Interest amount from the rest of the investment

IRA Principal=Treasury Bond Principal+Rest of the Investment Principal

I=Interest amount

P=Principal amount

r=interest rate

t=time period in years

I=Interest amount

P=Principal amount

r=interest rate

t=time period in years

Treasury Bond:

P=60,000

r=5%=.05

t=1

I=60,000(.05)(1)=3,000

Rest of the Investment:

I=10,200-3,000=7,200

P=IRA Principal-Treasury Bond Principal=150,000-60,000=90,000

t=1

r=7,200/(90,000)(1)=.08

**r=8%**