Which is the correct yield calculation... 0.75/0.95 or 0.75*0.05+0.75?
in Other Math Topics by

Your answer

Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.

1 Answer

If by yield is meant the amount of interest returned plus the amount invested, then the second expression is the correct one. In the expression 0.05 looks like a rate of 5% applied to an amount 0.75. The interest is 0.05*0.75=0.0375. When this is added to the original amount 0.75 we get 0.7875.

Other types of yield are given by the expression 100*(actual yield)/(expected yield) which is a percentage. Neither expression looks like this.

It should be noted that 0.75/0.95=0.75/(1-0.05) which is approximately equal to 0.75(1+0.05)=0.05*0.75+0.75.

by Top Rated User (1.2m points)

Related questions

1 answer
1 answer
1 answer
1 answer
1 answer
asked Apr 2, 2013 in Calculus Answers by anonymous | 634 views
1 answer
asked Sep 24, 2013 in Other Math Topics by latoya | 1.2k views
1 answer
asked Aug 29, 2017 in Other Math Topics by Amy | 493 views
1 answer
asked Jun 19, 2015 in Algebra 1 Answers by anonymous | 688 views
1 answer
asked Feb 21, 2014 in Algebra 1 Answers by anonymous | 700 views
1 answer
Welcome to MathHomeworkAnswers.org, where students, teachers and math enthusiasts can ask and answer any math question. Get help and answers to any math problem including algebra, trigonometry, geometry, calculus, trigonometry, fractions, solving expression, simplifying expressions and more. Get answers to math questions. Help is always 100% free!
87,516 questions
100,279 answers
2,420 comments
732,414 users