T-bills (Treasury bills) are one of the instruments that the U.S. Treasury Department uses to finance the public debt. If you buy a 180-day T-bill with a maturity value of $500,000 for $200,893, what annual simple interest rate will you earn? (Express answer as a percentage, correct to three decimal places.)

Suppose that after buying a new car you decide to sell your old car to a friend. You accept a 270-day note for $900,000 at 10% simple interest as payment. (Both principal and interest are paid at the end of 270 days.) Sixty days later you find that you need the money and sell the note to a third party for $600,000. What annual interest rate will the third party receive for the investment? Express the answer as a percentage, correct to three decimal places.

Find the total amount due on a loan of $800.000 at 9% simple interest at the end of 4 months.

If $900,000 is invested in an account that earns 9.75% compounded annually for 6 years, find the amount after six years.

Formula: 

The Formula for Simple Interest: A = P(1 + RT) 

A = amount, or future value 

P = principal, or present value 

r = annual simple interest rate(written as a decimal)

T = Time in Years 

Compound Interest: A = P(1+ R)N

Answer rating: 100% (QA)

The annual simple interest rate earned on a 180day Tbill Maturity value of Tbill 500000 Purchase pri... View the full answer