(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9780. What annual simple interest rate does this earn? (Round your answer to one decimal place.) % (b) If the bank charges a fee of $70 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 $9780. What annual simple interest rate does this earn? (Round your answer to one decimal place.) % (b) If the bank charges a fee of $70 to buy a T-bill, what is the actual interest rate you earn? (Round your answer to one decimal place.) %
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter13: Sequences And Series
Section13.4: Mathematics Of Finance
Problem 23E
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