Edwin R. answered • 07/21/16

Tutor

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Math Tutoring Only

Formulas:

I=Prt

P=I/rt

Yearly Income=Interest amount from Treasury Bond+Interest amount from Insurance Annuity

I=Interest amount

P=Principal amount

r=interest rate

t=time period in years

I=Prt

P=I/rt

Yearly Income=Interest amount from Treasury Bond+Interest amount from Insurance Annuity

I=Interest amount

P=Principal amount

r=interest rate

t=time period in years

Treasury Bond:

P=50,000

r=5%=.05

t=1

I=50,000(.05)(1)=2,500

Insurance Annuity:

I=13,000-2,500=10,500

r=7%=.07

t=1

P=10,500/(.07)(1)=150,000

**P=$150,000**