QuestionJune 5, 2025

XYZ Corporation invests 13,000 into 91-day treasury bills with an interest rate of 1.8% . If the broker charges a 20 commission . what is the yield? yield=[?]% yield=(amount invested (interest rate)(frac (days invested)/(360days)))(amount invested(frac {days invested) Give your answer as a percent rounded to the nearest hundredth.

XYZ Corporation invests 13,000 into 91-day treasury bills with an interest rate of 1.8% . If the broker charges a 20 commission . what is the yield? yield=[?]% yield=(amount invested (interest rate)(frac (days invested)/(360days)))(amount invested(frac {days invested) Give your answer as a percent rounded to the nearest hundredth.
XYZ Corporation invests 13,000 into
91-day treasury bills with an interest
rate of 1.8%  . If the broker charges a
 20 commission . what is the yield?
yield=[?]% 
yield=(amount invested (interest rate)(frac (days invested)/(360days)))(amount invested(frac {days invested)
Give your answer as a percent rounded to the nearest hundredth.

Solution
4.6(270 votes)

Answer

0.30% Explanation 1. Calculate Interest Earned Use the formula for interest: \text{Interest} = \text{Principal} \times \text{Rate} \times \frac{\text{Days}}{360} . Here, \text{Principal} = 13000, \text{Rate} = 0.018, and \text{Days} = 91. \text{Interest} = 13000 \times 0.018 \times \frac{91}{360} = 59.15 2. Calculate Total Earnings Subtract commission from interest earned: \text{Total Earnings} = \text{Interest} - \text{Commission} = 59.15 - 20 = 39.15 3. Calculate Yield Use the yield formula: \text{Yield} = \frac{\text{Total Earnings}}{\text{Principal}} \times 100 \text{Yield} = \frac{39.15}{13000} \times 100 = 0.30115

Explanation

1. Calculate Interest Earned<br /> Use the formula for interest: $ \text{Interest} = \text{Principal} \times \text{Rate} \times \frac{\text{Days}}{360} $. Here, $\text{Principal} = 13000$, $\text{Rate} = 0.018$, and $\text{Days} = 91$. <br /> $ \text{Interest} = 13000 \times 0.018 \times \frac{91}{360} = 59.15 $<br /><br />2. Calculate Total Earnings<br /> Subtract commission from interest earned: $ \text{Total Earnings} = \text{Interest} - \text{Commission} = 59.15 - 20 = 39.15 $<br /><br />3. Calculate Yield<br /> Use the yield formula: $ \text{Yield} = \frac{\text{Total Earnings}}{\text{Principal}} \times 100 $<br /> $ \text{Yield} = \frac{39.15}{13000} \times 100 = 0.30115 $
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