If you purchase $26,000 in U.S. Treasury Bills with a discount rate of 4.9% for a period of 26 weeks, what is the effective interest rate (as a %)? Round to the nearest hundredth percent.
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If you purchase $26,000 in U.S. Treasury Bills with a discount rate of 4.9% for a period of 26 weeks, what is the effective interest rate (as a %)? Round to the nearest hundredth percent.
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- What is the effective interest rate of a simple discount note for $32,000, at an ordinary bank discount rate of 13%, for 10 days? Assume that there are 360 days in a year. The effective interest rate is %. (Round to the nearest tenth as needed.)If you purchase $27,000 in U.S. Treasury Bills with a discount rate of 4.2% for a period of 26 weeks, what is the effective interest rate? Round to the nearest hundredth percent. Step 1 The effective interest rate on a U.S. Treasury Bill, or T-Bill, is the actual interest rate on a loan to the government and takes into account the fact that the purchaser does not pay the full amount of the T-Bill. It is calculated using the interest, purchase price, and time. The amount of interest on a T-Bill is calculated as follows where the discount rate is given as a decimal and the time will be a fraction whose numerator is the given amount of time in weeks and denominator is 52 weeks. interest = face value ✕ discount rate ✕ time The rate was given to be 4.2%. As a decimal, we have 4.2% = . Calculate the interest (in $) for a $27,000 T-Bill with a discount of 4.2% for 26 weeks. interest = face value ✕ discount rate ✕ time in weeks 52 weeks = $27,000 ✕ ✕ 26…Suppose you have received a credit card offer from a bank that charges interest at 1.1% per quarter, compounded quarterly. What is the nominal interest (annual percentage) rate for this credit card? What is the effective annual interest rate? The nominal interest (annual percentage) rate for this credit card is %. (Round to one decimal place.)
- What is the effective interest rate of a simple discount note for $27,500,at an ordinary bank discount rate of 10%, for 30 days? Assume that there are 360 days in a year. Question content area bottom The effective interest rate is ??? (Round to the nearest tenth as needed.)Suppose that you borrow $60,000 at 9% compounded monthly over five years. Knowing that the 9% represents the market interest rate, you compute the monthly payment in actual dollars as $1245.51. If the average monthly general inflation rate is expected to be 0.25%, determine the equivalent equal monthly payment series in constant dollars.(a) $1159(b) $1375(c) $1405(d) $1415Suppose you have received a credit card offerfrom a bank that charges interest at 1.4% per month,compounded monthly. What is the nominal interest(annual percentage) rate for this credit card? What isthe effective annual interest rate?
- What is the effective interest rate of a simple discount note for $31,200, at an ordinary bank discount rate of 14%, for 30 days? Assume that there are 360 days in a year. The effective interest rate is %. (Round to the nearest tenth as needed.) E 4What would be your annualized discount rate% on the purchase of a 170-day Treasury bill for $4700 that pays $4800 at maturity?To payoff a loan of $1000 you need to make 40 payment of $36.56 per month. What rate of interest are you paying? What is the stated or quoted rate? What is the annual percentage rate? What is the effective annual rate? What rate is bank likely to use to state its rate?
- If you sign a discount note for $9,500 at a bank discount rate of 9% for 3 months, what is the effective interest rate (as a %)?You purchase a TIP note with an original principal amount of $1,000,000 and a 10 percent annual coupon (paid semiannually). What will the first coupon payment be if the semiannual inflation over the first six months is 3 percent? (round your answer to 2 decimal places)A loan of $1000 is paid off in 12 monthly payments of $120 each. What is the effective annual interest rate of this loan? Provide answer in percentage and round to the nearest decimal, e.g., 30%.