Use a banker's year described above to answer this question. T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 290-day T-bill with a maturity value of $16,750 for $16,495.60, 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).

Use a banker's year described above to answer this question. T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 290-day T-bill with a maturity value of $16,750 for $16,495.60, 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).

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter4: Exponential And Logarithmic Functions

Section4.1: Exponential Functions

Problem 57E: Compound Interest If $10,000 is invested at an interest rate of 3% per year, compounded...

See similar textbooks

Similar questions

Equity in a Home When you purchase a home by securing a mortgage, the total paid toward the principal is your equity in the home. Technically, the lending agency calculates your equity by subtracting the amount you still owe on your mortgage from the current value of your home, which may be higher or lower than your principal. Assume that your mortgage is for 350, 000 at a monthly rate of 0.007 as a decimal and that the term of the mortgage is 30 years. Then your equity after k monthly payments is 350, 0001.007k-11.007360-1 dollars. Calculate the equity in your home after 10 years.
Interest Rate An item at a department store is priced at 189.99 and can be bought by making 20 payments of 10.50. Find the interest rate, assuming that interest is compounded monthly.
Depreciation Once a new car is driven away from the dealer, it begins to lose value. Each year, a car loses 10% of its value. This means that each year the value of a car is 90% of the previous year’s value. If a new car was purchased for $20,000, the value at the end of the first year would be $20000(0.90) and the value of the car after the end of the second year would be $20000(0.90)2. Complete the table shown below. What will be the value of the car at the end of the eighth year? Simplify the expression, to show the value in dollars.
Compound Interest If 4000 is borrowed at a rate of 5.75 interest per year, compounded quarterly, find the amount due at the end of the given number of years. a 4 years b 6 years c 8 years
Compound Interest If $10,000 is invested at an interest rate of 3% per year, compounded semiannually, find the value of the investment after the given number of years. (a) 5 years (b) 10 years (c) 15 years
Self Check After 800 years, how much radium will remain?