Edwin R. answered 07/21/16
Tutor
New to Wyzant
Math Tutoring Only
Formulas:
I=Prt
P=I/rt
Yearly Income=Interest amount from Treasury Bond+Interest amount from Corporate Bond
I=Interest amount
P=Principal amount
r=interest rate
t=time period in years
Treasury Bond:
P=10,000
r=5.5%=.055
t=1
I=10,000(.055)(1)=550
Corporate Bond:
r=6%=.06
t=1
I=(Yearly Income-Interest amount from Treasury Bond)=4000-550=3450
P=3450/(.06)(1)=57,500
P=$57,500