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- 1) what is the discount yield on a 9-month T-bill sold for RM925, assuming there are 365 days in a year?Assume all sales are one-time credit sales with a probability of collection of 96 percent. The variable cost per unit is $1.67, the sales price per unit is $4.99, and the monthly interest rate is 1.35 percent. What is the NPV of a credit sale of one item? $3.18 O $2.87 O $3.38 O $2.92 O $3.06What’s the equivalent interest rate to the terms 3/20, n/60? In other words, what is the effective annual rate that is "given" to a customer for this cash discount? (Use 365 days.) HINT: Use the I = P x R x T formula where R = I/PT and choose some value for the gross amount of the invoice (i.e $1,000). Label (%) and round to the nearest whole percent.
- What is the approximate annual cost of foregoing the cash discount if the credit term is 2/15, net 40 and the company pays end of 50 days? Use 360 days a year. Group of answer choices 28.80 percent 29.39 percent 20.57 percent 20.99 percentAt auction, 2-month T-bills were sold at a discount of 6.530%. What was the simple annual yield r?How much is the effective cost if you need to borrow $400,000 for one year with $475,000 line credit, where any borrowing have a single payment interest of 20% and there is a 1.5% fee for any unused credit? a) 12% b) 8.7% c) 2.04% d) 20.28% e) 17.65%
- 4. You are given the following information: A 183-day T-bill, face value $100, currently trading at a discount rate of 5% a) What is the price of the T-bill b) You sell the T-bill 10 days later. The T-bill discount rate is 4.5% c) What is the semi-annual compounded APR. Please answer with excel showing formulas.Calculate the price of a 180-day Treasury bill purchased at a 5% discount rate if the T-bill has a face value of £5,000.A T-Bill currently sells for $98.5000 per $100 of face value. It has 180 days remaining until maturity. What is the bank discount yield? 4.40% 3.00% 5.00% 4.00% O 1.50%
- A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one month.If a person accepts the offer, what is the nominal interest rate per year? O a. 60% O b. 6% O c. 50% O d. 5%A 91-day Treasury Bill with a face value of $150,000 is sold to yield 3.01 % p.a. What is the purchase price of the T-Bill? Round your answer to 2 decimal places.How much is the effective cost if you need to borrow $400,000 for one year with $475,000 line credit, where any borrowing have a single payment interest of 20% and there is a 1.5% fee for any unused credit? * 20.28% 17.65% 2.04% O 12% 8.7%