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BUSINESS • ECONOMICS What annual interest rate is earned by a 16-week T-bill with a maturity value of $2,400 that sells for $2,365.96? The annual interest rate is ---%

BUSINESS • ECONOMICS What annual interest rate is earned by a 16-week T-bill with a maturity value of $2,400 that sells for $2,365.96? The annual interest rate is ---%

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter7: Percents
Section: Chapter Questions
Problem 48CR
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I was given the wrong answer in the picture attached. The expert used 2362.96 instead of 2365.96
BUSINESS • ECONOMICS What annual interest rate is earned by a 16-week T-bill with a maturity value of $2,400 that sells for $2,365.96? The annual interest rate is % Expert Answer O Step1 a) Please find the answer below. Step2 b) Annualized return on T-bill can be calculated as: => (Maturity Value-price) * 52/weeks to maturity *1/price *100 = (2400-2362.86) * 52/16 * 1/2362.86 *100 = 5.11% Therefore, the annual interest rate is 5.11%.
Transcribed Image Text:BUSINESS • ECONOMICS What annual interest rate is earned by a 16-week T-bill with a maturity value of $2,400 that sells for $2,365.96? The annual interest rate is % Expert Answer O Step1 a) Please find the answer below. Step2 b) Annualized return on T-bill can be calculated as: => (Maturity Value-price) * 52/weeks to maturity *1/price *100 = (2400-2362.86) * 52/16 * 1/2362.86 *100 = 5.11% Therefore, the annual interest rate is 5.11%.
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