1. Chandrika buys a T-bill with a face value of $10,000.00 on 2021-01-12 that matures on 2021-04-19. The annual simple interest rate is 1.375%, and the daycount convention is ACT/365. What price P does she pay?

a.

P = $9,976.33.

b.

P = $9,979.98.

c.

P = $9,963.59.

d.

P = $9,969.05.

e.

P = $9,983.62.

2. Xenia receives an invoice for $6,700.00 with terms of 3/20 net 60. What effective annual simple interest rate is Xenia paying if she doesn't pay until the last day? (Use the daycount convention ACT / 360.)

a.

i = 25.887%

b.

i = 27.835%

c.

i = 21.711%

d.

i = 21.155%

e.

i = 22.825%

3. Given i⁽⁴⁾ = 6.07500%, find the equivalent effective annual rate.

a.

6.64984%

b.

6.21480%

c.

6.40125%

d.

6.52554%

e.

6.77413%