A financial analyst draws a cash flow diagram to model the following scenario. A 90-day commercial bill will mature for $200000. The price paid for the bill at issue was $196041.05. The bill was sold 19 days after issue for $196735.95. Calculate the annual rate of simple interest (as a percentage, to two decimal places) earned by the buyer who paid $196041.05 and sold for $196735.95. What was the annual rate of simple discount (as a percentage, to two decimal places) that the buyer sold at (earning a price of $196735.95)? Here is the cash flow diagram the analyst drew. Investor W N Which response best reflects the values of Z, Y, X, W, V, U, T and S? O a. Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 8.29% p.a. (simple discount) and S is 6.91% p.a. (simple interest). O b. Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 8.39% p.a. (simple discount) and S is 6.81% p.a. (simple interest). O c. Z is 90.00, Y is $200000.00, X is $196041.05, W is 71.00, V is $196735.95, U is not required, T is 31.35% p.a. (simple discount) and S is 1.82% p.a. (simple interest). O d. Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 7.84% p.a. (simple discount) and S is 9.24% p.a. (simple interest).
A financial analyst draws a cash flow diagram to model the following scenario. A 90-day commercial bill will mature for $200000. The price paid for the bill at issue was $196041.05. The bill was sold 19 days after issue for $196735.95. Calculate the annual rate of simple interest (as a percentage, to two decimal places) earned by the buyer who paid $196041.05 and sold for $196735.95. What was the annual rate of simple discount (as a percentage, to two decimal places) that the buyer sold at (earning a price of $196735.95)? Here is the cash flow diagram the analyst drew. Investor W N Which response best reflects the values of Z, Y, X, W, V, U, T and S? O a. Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 8.29% p.a. (simple discount) and S is 6.91% p.a. (simple interest). O b. Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 8.39% p.a. (simple discount) and S is 6.81% p.a. (simple interest). O c. Z is 90.00, Y is $200000.00, X is $196041.05, W is 71.00, V is $196735.95, U is not required, T is 31.35% p.a. (simple discount) and S is 1.82% p.a. (simple interest). O d. Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 7.84% p.a. (simple discount) and S is 9.24% p.a. (simple interest).
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter21: Cash Budgeting (cashbud)
Section: Chapter Questions
Problem 5R: The following four suggestions have been made to improve the company’s cash position. Evaluate the...
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Transcribed Image Text:A financial analyst draws a cash flow diagram to model the following scenario.
A 90-day commercial bill will mature for $200000. The price paid for the bill at issue was $196041.05. The bill was sold 19
days after issue for $196735.95. Calculate the annual rate of simple interest (as a percentage, to two decimal places)
earned by the buyer who paid $196041.05 and sold for $196735.95. What was the annual rate of simple discount (as a
percentage, to two decimal places) that the buyer sold at (earning a price of $196735.95)?
Here is the cash flow diagram the analyst drew.
Investor
X
S
W
N
Which response best reflects the values of Z, Y, X, W, V, U, T and S?
O a. Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 8.29% p.a. (simple
discount) and S is 6.91% p.a. (simple interest).
O b. Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 8.39% p.a. (simple
discount) and S is 6.81% p.a. (simple interest).
O c. Z is 90.00, Y is $200000.00, X is $196041.05, W is 71.00, V is $196735.95, U is not required, T is 31.35% p.a. (simple
discount) and S is 1.82% p.a. (simple interest).
O d. Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 7.84% p.a. (simple
discount) and S is 9.24% p.a. (simple interest).
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