The price of $8,000 face value commercial paper is $7,930 If the annualized discount rate is 4 , when will the paper mature If the annualized investment rate is 4 , when will the paper mature ...

Let N when the paper matures Discount Rate 8000 7930 8000 ...

The price of $8,000 face value commercial paper is $7,930. If the annualized discount rate is 4%,

Question:

The price of $8,000 commercial paper is $7,930. If the annualized is 4%, when will the paper mature? If the annualized investment rate % is 4%, when will the paper mature?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...