QuestionJune 5, 2025

XYZ Corporation invests 11,000 into 91-day treasury bills with an interest rate of 2.3% . 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 11,000 into 91-day treasury bills with an interest rate of 2.3% . 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 11,000 into
91-day treasury bills with an interest
rate of 2.3%  . 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(280 votes)

Answer

2.27% Explanation 1. Calculate Interest Earned Use the formula for interest earned: **Interest = Principal \times \text{Rate} \times \frac{\text{Days}}{360}**. Here, Principal = 11,000, Rate = 2.3% or 0.023, Days = 91. Interest = 11,000 \times 0.023 \times \frac{91}{360}. 2. Calculate Total Amount with Commission Add the commission to the principal amount invested: Total = Principal + Commission = 11,000 + 20. 3. Calculate Yield Use the yield formula: **Yield = \frac{\text{Interest}}{\text{Total}} \times 100**. Substitute the values from Steps 1 and 2 into this formula.

Explanation

1. Calculate Interest Earned<br /> Use the formula for interest earned: **Interest = Principal \times \text{Rate} \times \frac{\text{Days}}{360}**. Here, Principal = $11,000$, Rate = 2.3% or 0.023, Days = 91.<br /> Interest = $11,000 \times 0.023 \times \frac{91}{360}$.<br /><br />2. Calculate Total Amount with Commission<br /> Add the commission to the principal amount invested: Total = Principal + Commission = $11,000 + 20$.<br /><br />3. Calculate Yield<br /> Use the yield formula: **Yield = \frac{\text{Interest}}{\text{Total}} \times 100**.<br /> Substitute the values from Steps 1 and 2 into this formula.
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