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treasury bills (t-bills) can be purchased from the U.S. Treasury department. You buy a t-bill for 981.60 that pays 1,000$ in 13 weeks. What simple interest rate, to the nearest tenth of a percent, does this t-bill earn

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anniwuanyanwu1

Answer:The simple interest rate is 7.50%

Step-by-step explanation:

Simple interest, I =( P × T × R) / 100

Where P= Principal investment

T = Time in years

R = rate

Given

P= 981.60

I = 1000 - 981.60 = 18 .40

T = 13 weeks = 13 / 52 = 0.25 year

I =( P × T × R) / 100

Cross multiply

I × 100 = P × T × R

18.40 × 100 = 981.60 × 0.25 × R

1840 = 245.4 R

R= 1840 / 245.4

R = 7.498%

To the nearest tenth

R = 7.50%

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