Answer:
The amount which investors have been prepared to pay $1123.153
Explanation:
It is given that government strip promised to pay $1000
So principal amount P = $1000
Time period id given n = 5 years
Rate of interest r = 2.35 %
We have to find the amount after 5 years
Future value is given as
[tex]A=P(1+\frac{r}{100})^n[/tex], here P is principal amount, r is rate of interest and n is time period
So [tex]A=1000\times (1+\frac{2.35}{100})^5[/tex]
[tex]A=1000\times 1.0235^5[/tex]
[tex]A=1000\times1.123=1123.153[/tex]
So the amount which investors have been prepared to pay $1123.153
