QuestionJune 5, 2025

XYZ Corporation invests 14,000 into 91-day treasury bills with an interest rate of 2.2% . If the broker charges a 25 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 14,000 into 91-day treasury bills with an interest rate of 2.2% . If the broker charges a 25 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 14,000 into
91-day treasury bills with an interest
rate of 2.2%  . If the broker charges a
 25 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
4.2(240 votes)

Answer

0.47\% Explanation 1. Calculate Interest Earned Use the formula for interest earned: \text{Interest} = \text{Principal} \times \text{Rate} \times \frac{\text{Days}}{360} . Here, \text{Principal} = 14000, \text{Rate} = 0.022, and \text{Days} = 91. So, \text{Interest} = 14000 \times 0.022 \times \frac{91}{360}. 2. Calculate Total Yield Use the yield formula: \text{Yield} = \frac{\text{Interest}}{\text{Principal} + \text{Commission}}. Substitute \text{Interest} from Step 1, \text{Principal} = 14000, and \text{Commission} = 25. 3. Convert Yield to Percentage Multiply the yield by 100 to convert it to a percentage.

Explanation

1. Calculate Interest Earned<br /> Use the formula for interest earned: $ \text{Interest} = \text{Principal} \times \text{Rate} \times \frac{\text{Days}}{360} $. Here, $\text{Principal} = 14000$, $\text{Rate} = 0.022$, and $\text{Days} = 91$. So, $\text{Interest} = 14000 \times 0.022 \times \frac{91}{360}$.<br /><br />2. Calculate Total Yield<br /> Use the yield formula: $\text{Yield} = \frac{\text{Interest}}{\text{Principal} + \text{Commission}}$. Substitute $\text{Interest}$ from Step 1, $\text{Principal} = 14000$, and $\text{Commission} = 25$.<br /><br />3. Convert Yield to Percentage<br /> Multiply the yield by 100 to convert it to a percentage.
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