Castelda company issues zero coupon bonds which mature in 30 years. These bonds can be bought for $999.38 and then pay no annual interest payments, only $100,000 at maturity. What is the annual percentage cost of these bonds to the issuing company? (Do not round intermediate calculations. Round your final answer to two decimal places of percentage.)

16.59%

Explanation:

We are given the present value of the bonds, their future value and the time, we need to calculate the rate:

FV = PV (1 + rate)ⁿ

100,000 = 999.38 (1 + rate)³⁰

(1 + rate)³⁰ = 100,000 / 999.38 = 100.062

1 + rate = ³⁰√100.062 = 1.1659

rate = 1.1659 - 1 = 0.1659 or 16.59%

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.

the correct answer is b.)