Question: 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

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.

T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 290-day T-bill with a maturity value of $7,750 for $7,505.45, what annual simple interest rate will you earn? Express your answer as a percentage.

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