Solve the Problem. -Larry Thompson Buys a $80,000 T-Bill at a 5% Discount

Multiple Choice

Solve the problem.
-Larry Thompson buys a $80,000 T-bill at a 5% discount for 13 weeks. Find the effective interest rate. (Assume 52 weeks per year.)

A) 1.91%
B) 6.25%
C) 1.27%
D) 5.06%