The following table lists several corporate bonds issued during a particular quarter. Bank of America General Electric Goldman Wells Company AT&T Verizon Sachs Fargo Time to Source: Financial Industry Regulatory Authority (www.finra.org) 7 (years) Annual 2.40 3.00 5.25 5.15 4.15 3.50 Rate (%) If the General Electric bonds you purchased had paid you a total of $8,840 at maturity, how much did you originally invest? (Round your answer to the nearest dollar.) $

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The following table lists several corporate bonds issued during a particular quarter.
Bank of
General
Goldman
Wells
Company
AT&T
Verizon
America
Electric
Sachs
Fargo
Time to
Source: Financial Industry Regulatory Authority (www.finra.org)
8
7
(years)
Annual
2.40
3.00
5.25
5.15
4.15
3.50
Rate (%)
If the General Electric bonds you purchased had paid you a total of $8,840 at maturity, how much did you originally invest? (Round your answer to the nearest dollar.)
$
Transcribed Image Text:The following table lists several corporate bonds issued during a particular quarter. Bank of General Goldman Wells Company AT&T Verizon America Electric Sachs Fargo Time to Source: Financial Industry Regulatory Authority (www.finra.org) 8 7 (years) Annual 2.40 3.00 5.25 5.15 4.15 3.50 Rate (%) If the General Electric bonds you purchased had paid you a total of $8,840 at maturity, how much did you originally invest? (Round your answer to the nearest dollar.) $
Expert Solution
Step 1

Given data :

Given time to maturity (General Electric) = 2 Years

Amount Rate = 5.25

Let P is the investment.

Interest earned = P×t×r

                         = P×2×0.0525

                        = 0.105 P

 

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