Today is November 1 2021, Jason plans to make a 360-day investment using two consecutive 180-day $500,000 bank bills. The maturity proceeds of the first bill will be rolled over into the second bill. The purchase yields for the two 180-day bills will be 3.09% and 3.49% p.a., respectively. Note that any surplus funds after 180 days can be invested for 180 days at a rate of 3.79% p.a. simple interest.

What annual rate of simple interest will Jason earn on his 360-day investment? Express your answer in terms of percentage and round it to four decimal places

a. 3.1762%

b. 3.1170%

c. 3.3234%

d. 3.2203%

Answer rating: 100% (QA)

Formula used for redeemable value ie amount Principal simple in... View the full answer