17. A $12,000 T-bill is purchased at a 4.05% discount rate for 40 weeks. Find (a) the purchase price of the T-bill, (b) the maturity value, (c) the interest earned, and (d) the effective rate of interest to the nearest hundredth of a percent.

17. A $12,000 T-bill is purchased at a 4.05% discount rate for 40 weeks. Find (a) the purchase price of the T-bill, (b) the maturity value, (c) the interest earned, and (d) the effective rate of interest to the nearest hundredth of a percent.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 10MC

See similar textbooks

Related questions

Q: A 6-month $15,500 treasury bill with a simple annual discount rate of 0.47% was sold in 2016. Assume…

A: Treasury bill is the security raised by the government for the purpose of fulfilling the short term…

Q: calculate the interest, purchase price, and effective interest rate of a $50,000, 2.3%, 26 week…

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: Hy Potenuse bought a $10,000 T-bill at a 0.115 percent discount rate for13 weeks (91 days).a. How…

A: a) Computation:

Q: 1. Find the proceeds of P 50 000 due at the end of 8 months if the discount rate is 10 %%? Answer;

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: full explanation urgent all parts plzzz I will thumb up?

A: The effective rate of interest - It is the true interest rate that a company earns or pays over a…

Q: If you purchase $26,000 in U.S. Treasury Bills with a discount rate of 4.9% for a period of 26…

A: Given information: Face value is $26,000 Discount rate is 4.9% Number of periods is 26 weeks

Q: 1. A debt of P15,000 now will be paid in the following schedule: a. P4,000 at the end of three…

A: Debt amount = P 15000 Payment after 3 months (Q1) (P1) = P 4000 Payment after 12 months (Q4) (P2) =…

Q: naturity value of a $55,000 note at 10% for 7 months is: (Ro . $57,750. B. $55,000. C. $58,208. D.…

A: Solution: Total Interest = $55,000 x Interest rate x Time Period = $55,000 x…

Q: Calculate the annualized discount rate and annualized investment rate on the purchase of 91- day…

A: Given: Face value =$3000Purchase price =$2900

Q: If you purchase $28,000 in U.S. Treasury Bills with a discount rate of 4.5% for a period of 26…

A: The effective annual interest rate is the real return on a savings account or any interest-paying…

Q: A £12,000 T-bill is purchased at a 4.05% discount rate for 40 weeks. Find the maturity value of the…

A: t bills are sold at discount to par is face value equals to its maturity value.

Q: Haumea has been offered credit terms of discount of four percent if paid within thirty days, if not…

A: When goods are sold on credit, the seller extends short term finance to the buyer to make the…

Q: H. CANSY Merchandising borrowed P800,000 from ABC Bank at 10% simple interest or one year and six…

A: H) Amount borrowed (A) = P 800000 r = 10% simple interest rate n = 1 year 6 months = 1.5 years

Q: Assume that 3-month Treasury bills totaling $15 billion were sold in $10,000 denominations at a…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Given an annual credit sales value of 365 million; accounts receivable beg. 36.5 million, cost of…

A: Solution:- Average Collection Period means the average days it takes a firm to collect money from…

Q: Illustration: A company sells $50,000 of goods with the terms net/30. The receivable is immediately…

A: Sales price = $50,000 Factor fee = 3% Interest = 10% reserve = 8%

Q: You would like to purchase a Treasury bill that has a $10,000 face value and is 68 days trom…

A: As per Bartleby guidelines, If multiple questions are posted , only first 1 question will be…

Q: Calculate issue price of T-bills if the nominal value is 100,000 TL, interest rate % 12 and maturity…

A: T-bills are expressed as discount yields or interest rate. The issue price or purchase price of the…

Q: You can purchase Php treasury bill that is currently selling on a discount basis at 97 2% of its…

A: Treasury bill = 1 million Discount basis = 971/2% T- bill maturity = 140 days

Q: A $100,000 168-day T-bill is purchased for $99,004 on its issue date. What simple ate of interest…

A: Given: Face value =$100000Purchase value =$99004Days to maturity =168

Q: An amount of P14,000 is borrowed at a discount rate of 10%, find the proceeds if the length of the…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Suppose a company invests in a $50,000 United States Treasury bill at 3.35% interest for 28 days.…

A: Treasury bills: Treasury bills are issued by the government and sold by auctioning these bills…

Q: 21. Using simple interest formula, determine the simple interest that will be paid on a P300,000.00…

A: The simple interest rate is the regular interest income or payment for a deposit or a loan amount.…

Q: A 91-day Treasury Bill with a face value of $150,000 is sold to yield 3.01 % p.a. What is the…

A: A T-Bill is a money market instrument issued by the Treasury. The maturity date of such bills is…

Q: A 6-month $17,500 treasury bill with a simple annual discount rate of 0.48% was sold in 2016. Assume…

A: Treasury bill is the risk-free security which is issued for a short term. Treasury bill is called as…

Q: Sam Slater buys a $10,000, 13-week Treasury bill at 5 % .What is the effective rate? (Round your…

A: Discount = Value * Rate * time Discount = $10000 * 5.5% * 13 / 52 Discount = $137.50

Q: An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the…

A: Step 1 Discount of trade bills is short-term financing or credit facility provided by bank in which…

Q: Problem A DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for…

A: Note: I am supposed to provide the solution to problem 1 only. Please repost the remaining questions…

Q: 14. A 90-day government bill was bought by an investor for a price of K95 per K100 nom- inal. After…

A: Solution:- Given, Annual effective rate of Return formula = (Selling price/Buying price)^(1/n)-1…

Q: nider Industries sells on terms of 2/10, net 25. Total sales for the year are $600,000. Thirty…

A: Days Sales Outstanding means the number of days taken by the firm to collect the payment from their…

Q: 20.000 TLloan is being repaid by installments of 400 TL at the end of each month for as long as…

A: The loan balance at the end of three years can be computed by calculating the future value of the…

Q: nider Industries sells on terms of 2/10, net 35. Total sales for the year are $600,000. Thirty…

A: Days sales outstanding means the average number of days , a customer take , to make payment. This…

Q: 30. A company is buying a new machine for $100,000. Bank creditis used to finance the entire amount…

A: Cost of Machine is $100,000 Interest Rate is 10% Plan -1 is to Pay interest due at the end of each…

Q: Dome Metals has credit sales of $522.000 yearly If Dome offers a 2 percent discount for payment in…

A: Accounts receivables of a company are the receivables which a company will receive from the…

Q: Queen Corp sells on terms of 2/10, n/30. 70% of customers normally avail of the discounts. Annual…

A: The calculation of average accounts receivable has been made as follows:

Q: The Treasury Department auctioned $23 billion in 3-month bills in denominations of $10,000 at a…

A: Given data, Treasury Department auctioned worth of $23 billion in 3 months denominations. Discount…

Q: Calculate the price of a 180-day Treasury bill purchased at a 5% discount rate if the T-bill has a…

A: Time period is 180 days Discount rate is 5% Face value or FV is E5,000 To Find: Price of T- bill

Q: Zerox Copying Company plans to borrow $174,000. New Jersey National Bank will lend the money at…

A: a) What is the effective rate of interest? Amount of loan=$174,000Interest rate=13%Interest…

Q: National Co. borrowed P100,000 for six months from the percent. The prime rate was 8.5 percent at…

A: In this question we have to calculate interest on national co. for the 6 months

Q: Everything Christmas Emporium expects a seasonal profit of close to 1 billion dollars. A typical…

A: Banks charge the customer for the maintenance of the account you hold with the bank. These…

Q: On January 18, 2007, BusinessWeek reported yields on Treasury Bills. Bruce Martin purchased a…

A: Treasury bills: These are government-issued securities having maturity within a year. These are also…

Q: A 3 month $19,000 treasury bill with a simple annual discount rate of 0.27% was sold in 2016. Assume…

A: Given information: Simple annual discount rate is 0.27% Principal amount is $19,000 Time period is 3…

Q: wed 12,000 by signing a

A: Note value $12000 Days 120 Interest rate 15% Interest due on maturity…

Q: 9. Aloan of $4000 was repald at the end of 14 months with a check for $4350. What simple annual…

A: Amount of Simple Interest paid = (Amount Borrowed X Simple Rate of Interest X Period)/ 12 months

Q: In October 2008, six-month (182-day) Treasury bills were issued at a discount of 1.42%. What was the…

A: Treasury bills are short term financial instruments that are issued by the US treasury with a…

Q: a Assuming you bought a 182-day Treasury Bill with a face value GH¢20,000.00 and held it for 45…

A: Treasury Bill refers to those securities that have a maturity value of less than 1 year. These are…

Q: Find the amount due at the end of 8 months whose present value Php 80,000. a) when the discount is…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: If you purchase $26,000 in U.S. Treasury Bills with a discount rate of 4.3% for a period of 26…

A: An effective interest rate is defined as an interest rate on the loan or financial product used to…

Question

100%

17. A $12,000 T-bill is purchased at a 4.05% discount rate for
40 weeks. Find (a) the purchase price of the T-bill, (b) the
maturity value, (c) the interest earned, and (d) the effective
rate of interest to the nearest hundredth of a percent.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
You have purchased a $1,000 Face Value, 9-month (270-day) Treasury-bill (T-bill) with a quoted market discount yield equal to 5.25%. What is the annual money market yield for this 270-day T-bill?
1) what is the discount yield on a 9-month T-bill sold for RM925, assuming there are 365 days in a year?
What is the approximate annual cost of foregoing the cash discount if the credit term is 2/15, net 40 and the company pays end of 50 days? Use 360 days a year. Group of answer choices 28.80 percent 29.39 percent 20.57 percent 20.99 percent
If a 6-month T-Bill with a face value of $100 is purchased at a 8% annual discount, the buyer will receive $100 at maturity. The rate of return (annualized) of this T-Bill is 7.5% 15% 11.1% 13.5% 8.33% 14.6% 6.2% 5%
Queen Corp sells on terms of 2/10, n/30. 70% of customers normally avail of the discounts. Annual sales are P900,000, 80% of which is made on credit. Cost of approximately 75% of sales. Use 360 days. What is the average investment in receivable?
Find the purchase price of a 91-day treasury bill that matures at $5000 if the T-bill is sold to yield an annual interest rate of 4.5%.
Given an annual credit sales value of 365 million; accounts receivable beg. 36.5 million, cost of goods sold of 240 million, and beginning inventory of 20 million, how long is the average colelction period? (assume 365 days in a year) a. 30 days b. 55.5 days c. 36.5 days d. 10 days
4. You are given the following information: A 183-day T-bill, face value $100, currently trading at a discount rate of 5% a) What is the price of the T-bill b) You sell the T-bill 10 days later. The T-bill discount rate is 4.5% c) What is the semi-annual compounded APR. Please answer with excel showing formulas.
A company has a collection period of 40 days and factors all receivables immediately at a discount of 1.8 percent. What is the effective annual cost of borrowing? Assume 365 days per year. Multiple Choice 18.03% 16.70% 17.68% 15.71% 16.73% Please answer fast i give you upvote.
If you purchase $26,000 in U.S. Treasury Bills with a discount rate of 4.3% for a period of 26 weeks, what is the effective interest rate (as a %)? Round to the nearest hundredth percent.
Calculate the present value of R1 700 received at the end of each month for 6 successive months using a discount rate of 8%