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 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**