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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 97
Use the ordinary interest method, 360 days, to solve the following word problems. Round to the nearest cent when necessary.
Christy Thomas purchased $150,000 in U.S. Treasury bills with a discount rate of 4.2% for a period of 4 weeks.
a. How much interest did Christy earn on the T-bill investment?
b. How much was the purchase price of Christy's T-bills?
c. What was the effective interest rate of Christy's T-bill investment? Round to the nearest hundredth of a percent.
Christy Thomas purchased $150,000 in U.S. Treasury bills with a discount rate of 4.2% for a period of 4 weeks.
a. How much interest did Christy earn on the T-bill investment?
b. How much was the purchase price of Christy's T-bills?
c. What was the effective interest rate of Christy's T-bill investment? Round to the nearest hundredth of a percent.
Explanation
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a. First find the interest on the T-bill...
Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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