Use a banker's year described above to answer this question. To complete the sale of a house, the you accept a 340-day note for $8,000 at 8% simple interest. (Both interest and principal are repaid at the end of the 340 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $8,145 after 70 days. What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage. %. Round to the nearest thousandths of a percent (3 decimal places).

Use a banker's year described above to answer this question. To complete the sale of a house, the you accept a 340-day note for $8,000 at 8% simple interest. (Both interest and principal are repaid at the end of the 340 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $8,145 after 70 days. What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage. %. Round to the nearest thousandths of a percent (3 decimal places).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

**T-Bills Interest Rate Calculation**

T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 240-day T-bill with a maturity value of $12,750 for $12,470.57, what annual simple interest rate will you earn? Express your answer as a percentage.

____%. Round to the nearest thousandths of a percent (3 decimal places).

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