(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9800. What annual simple interest rate does this earn? (Round your answer to one decimal place.) 4.08 % (b) If the bank charges a fee of $80 to buy a T-bill, what is the actual interest rate you earn? (Round your answer to one decimal place.) %
(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9800. What annual simple interest rate does this earn? (Round your answer to one decimal place.) 4.08 % (b) If the bank charges a fee of $80 to buy a T-bill, what is the actual interest rate you earn? (Round your answer to one decimal place.) %
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9800. What annual simple interest rate does this earn? (Round your answer to one decimal place.)
4.08
%
(b) If the bank charges a fee of $80 to buy a T-bill, what is the actual interest rate you earn? (Round your answer to one decimal place.)
%
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