xyz corporation invests $10,000 into 91 - day treasury bills with an interest rate of 2.5%. if the broker…

xyz corporation invests $10,000 into 91 - day treasury bills with an interest rate of 2.5%. if the broker charges a $20 commission, what is the yield?\nyield = ?%\nyield = \\frac{amount invested(interest rate)(\\frac{days invested}{360 days})}{amount invested(\\frac{days invested}{360 days})+ commission}\ngive your answer as a percent rounded to the nearest hundredth.

xyz corporation invests $10,000 into 91 - day treasury bills with an interest rate of 2.5%. if the broker charges a $20 commission, what is the yield?\nyield = ?%\nyield = \\frac{amount invested(interest rate)(\\frac{days invested}{360 days})}{amount invested(\\frac{days invested}{360 days})+ commission}\ngive your answer as a percent rounded to the nearest hundredth.

Answer

Explanation:

Step1: Identify values

Let the amount invested $P = 10000$, interest rate $r=0.025$, number of days invested $d = 91$, and commission $C = 20$.

Step2: Calculate numerator

The numerator of the yield - formula is $P\times r\times\frac{d}{360}=10000\times0.025\times\frac{91}{360}=\frac{10000\times0.025\times91}{360}=\frac{250\times91}{360}=\frac{22750}{360}\approx63.1944$.

Step3: Calculate denominator

The denominator of the yield - formula is $P\times\frac{d}{360}+C=10000\times\frac{91}{360}+20=\frac{910000}{360}+20=\frac{910000 + 7200}{360}=\frac{917200}{360}\approx2547.7778$.

Step4: Calculate yield

Yield $=\frac{\text{numerator}}{\text{denominator}}\times100%=\frac{63.1944}{2547.7778}\times100%\approx2.48%$.

Answer:

$2.48%$