1) Calculate the effective rate of interest (to the nearest hundredth percent) of the following Treasury bill. Given: $10,000 Treasury bill, 3.85% for 13 weeks.

2) Karim was planning for his vacation to the Bahamas. To cover his costs, he took out a $15,800, 4% simple discount note paying $40 in interest. What was the length of his loan? Assume a 365-day year.

3) First Bank loaned $360,000 for 180 days to a company purchasing a rock-crushing machine. The bank sold the 7% simple interest note 120 later at an 8% discount rate. Find the proceeds. Assume a 360-day year for both notes.