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stepan [7]
2 years ago
6

In 25 years, a bond with a 4.75% annual interest rate earned $2,375 as interest. What was the principal amount of the bond?

Mathematics
2 answers:
OleMash [197]2 years ago
8 0

Answer:

Denote the principal amount: P

In 25 years, a bond with a 4.75% annual interest rate earned $2,375 as interest.

=> P x (1 + 4.75/100)^25 - P = 2375

=> P x 3.19 - P = 2375

=> P x 2.19 = 2375

=> P = 2375/2.19 = 1084.48$

Hope this helps!

:)

svetoff [14.1K]2 years ago
7 0

Answer:$2000

Step-by-step explanation:

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