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A principal of $2000 earns 5.5% simple interest. How long will it take for the future value to become $2300?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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Question

1) A principal of $2000 earns 5.5% simple interest. How long will it take for the future value to become $2300?

2) A bank obtains an 8-month T-bill at a discount rate of 8%. What is the simple interest rate?

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