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 210-day T-bill with a maturity value of $13,750 for $13,599.60, 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).

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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Author:Carter
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Chapter7: Exponents And Exponential Functions
Section: Chapter Questions
Problem 67SGR
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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 210-day T-bill with a maturity value of $13,750 for
$13,599.60, 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).
Transcribed Image Text: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 210-day T-bill with a maturity value of $13,750 for $13,599.60, 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).
Simple Interest
Because simple interest is used on short-term notes, the
time period is often given in days rather than months or
years. We convert this to years by dividing by 360,
assuming a 360 day year called a banker's year.
Transcribed Image Text:Simple Interest Because simple interest is used on short-term notes, the time period is often given in days rather than months or years. We convert this to years by dividing by 360, assuming a 360 day year called a banker's year.
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