(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9800. What annual simple interest rate does this earn? (Round your answer to one decimal place.) % (b) If the bank charges a fee of $80 to buy a T-bill, what is the actual interest rate you earn? (Round your answer to one decimal place.) %
(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9800. What annual simple interest rate does this earn? (Round your answer to one decimal place.) % (b) If the bank charges a fee of $80 to buy a T-bill, what is the actual interest rate you earn? (Round your answer to one decimal place.) %
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.1: Exponential Functions
Problem 53E: Interest Ron Hampton needs to choose between two investments: One pays 6% compounded annually, and...
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Transcribed Image Text:(a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9800. What annual simple interest rate does this earn? (Round your answer to one decimal place.)
%
(b) If the bank charges a fee of $80 to buy a T-bill, what is the actual interest rate you earn? (Round your answer to one decimal place.)
%
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