Sunday
March 29, 2015

Homework Help: Calculus

Posted by -Untamed- on Wednesday, September 21, 2011 at 8:58pm.

I keep getting confused on this stuff.

Alan invests $2500 in a 5 year Government bond paying interest at 3.7% per annum compounded annually. Calculate the value of the bond at maturity (after 5 yrs)

Tn = 2500(0.037)^5-1
= 2500(0.037)^4
= 2500(1.8741*10^-6)

I know the third step is wrong, but I keep getting to the power of.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Calculus - A government bond is bought for $5000 on June 1, 2010. The value of ...
maths-- compound interest - find the compund interest on $2500 for one year at 4...
Math - The Garraty company has two bond issues outstanding. Both bonds pa $100 ...
Finance - Bond value and time--Constant required returns Pecos Manufacturing has...
Calculus - A government bond is bought for $5000 on June 1, 2010. The value of ...
Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
Pre-Calculus - What is the present value of a $1000 bond which pays $50 a year ...
bond valuation - Bond valuation The Garraty Company has two bond issues ...
bond valuation - Bond valuation The Garraty Company has two bond issues ...

Members