question 17 (3.3 points)\nyou invest $4,000 in a bond with a maturity date in 8 years at a fixed coupon rate…

question 17 (3.3 points)\nyou invest $4,000 in a bond with a maturity date in 8 years at a fixed coupon rate of 5.33%. how much are you paid each year?\nenter the dollar amount rounded to the nearest cent.\nyour answer:\n\nanswer\n\nquestion 18 (3.3 points)\nyou purchased a car for $37,250. the car depreciates at a rate of 10% per year. after 5 years, you decide to sell the car. what is the value of your car after 5 years?\nuse this formula:\nfv = pv(1 - r)^t\nenter the dollar amount rounded to the nearest cent.

question 17 (3.3 points)\nyou invest $4,000 in a bond with a maturity date in 8 years at a fixed coupon rate of 5.33%. how much are you paid each year?\nenter the dollar amount rounded to the nearest cent.\nyour answer:\n\nanswer\n\nquestion 18 (3.3 points)\nyou purchased a car for $37,250. the car depreciates at a rate of 10% per year. after 5 years, you decide to sell the car. what is the value of your car after 5 years?\nuse this formula:\nfv = pv(1 - r)^t\nenter the dollar amount rounded to the nearest cent.

Answer

Explanation:

Step1: Calculate annual bond payment

The annual bond - payment is calculated by multiplying the principal amount by the coupon rate. The principal amount ($P$) is $4000$ and the coupon rate ($r$) is $5.33%=0.0533$. The formula for the annual bond - payment ($A$) is $A = P\times r$. $A=4000\times0.0533$ $A = 213.20$

Step2: Calculate car's depreciated value

For the car - depreciation problem, we are given the formula $FV = PV(1 - r)^t$, where $PV = 37250$ (present value, the initial price of the car), $r=0.1$ (rate of depreciation), and $t = 5$ (number of years). $FV=37250\times(1 - 0.1)^5$ $FV=37250\times0.9^5$ $FV=37250\times0.59049$ $FV = 22005.7725\approx22005.77$

Answer:

Question 17: $213.20$ Question 18: $22005.77$