Timothy periodically purchases bonds issued by Prince Waste Collection. Last year, he bought two bonds in February, two bonds in June, and one bond in August, then sold them all in October. Prince Waste Collection bonds were selling 94.593 in February, 92.661 in June, 105.480 in August, and 102.882 in October. If each bond that Timothy bought had par value of \( \$ 1,000 \), how much profit did he make from buying and selling these bonds? a. \( \$ 15.91 \) b. \( \$ 34.42 \) c. \( \$ 159.12 \) d. \( \$ 344.22 \) Please select the best answer from the choices provided

To determine Timothy's profit from buying and selling the Prince Waste Collection bonds, we'll follow these steps: 1. **Calculate the Purchase Amount:** - **February Purchase:** - Bought 2 bonds at 94.593% of par value. - Cost per bond: \( 0.94593 \times \$1,000 = \$945.93 \) - Total: \( 2 \times \$945.93 = \$1,891.86 \) - **June Purchase:** - Bought 2 bonds at 92.661% of par value. - Cost per bond: \( 0.92661 \times \$1,000 = \$926.61 \) - Total: \( 2 \times \$926.61 = \$1,853.22 \) - **August Purchase:** - Bought 1 bond at 105.480% of par value. - Cost per bond: \( 1.05480 \times \$1,000 = \$1,054.80 \) - **Total Purchase Cost:** \[ \$1,891.86 + \$1,853.22 + \$1,054.80 = \$4,799.88 \] 2. **Calculate the Selling Amount:** - Sold all 5 bonds in October at 102.882% of par value. - Selling price per bond: \( 1.02882 \times \$1,000 = \$1,028.82 \) - Total Selling Amount: \( 5 \times \$1,028.82 = \$5,144.10 \) 3. **Determine the Profit:** \[ \text{Profit} = \text{Total Selling Amount} - \text{Total Purchase Cost} = \$5,144.10 - \$4,799.88 = \$344.22 \] **Answer:** d. \( \$344.22 \)