xyz corporation invests $13,000 into 91 - day treasury bills with an interest rate of 1.8%. if the broker…

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)(days invested / 360 days) / amount invested(days invested / 360 days) + commission 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)(days invested / 360 days) / amount invested(days invested / 360 days) + commission give your answer as a percent rounded to the nearest hundredth.

Answer

Explanation:

Step1: Calculate the interest earned

The formula for simple - interest is $I = P\times r\times t$, where $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. Here, $P=$13000$, $r = 0.018$, and $t=\frac{91}{360}$ years. $I=13000\times0.018\times\frac{91}{360}$ $I = 13000\times0.018\times\frac{91}{360}=66.35$

Step2: Calculate the yield

The yield formula is $yield=\frac{I}{P\times\frac{91}{360}+20}$ Substitute $I = 66.35$, $P = 13000$ into the formula: $yield=\frac{66.35}{13000\times\frac{91}{360}+20}$ First, calculate the denominator: $13000\times\frac{91}{360}+20=\frac{13000\times91}{360}+20=\frac{1183000}{360}+20\approx3286.11 + 20=3306.11$ Then, $yield=\frac{66.35}{3306.11}\approx0.0201$ Convert to percentage: $yield = 2.01%$

Answer:

$2.01$