1- Hafers, an electrical supply company, sold $5,000 of equipment to Jim Coates Wiring, Inc. Coates signed a promissory note May 12 with 4.8% interest. The due date was August 10. Short of funds, Hafers contacted Charter One Bank on July 20; the bank agreed to take over the note at a 6.5% discount. (Use Days in a year table.)

What proceeds will Hafers receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.)

Proceeds received

2- The Treasury Department auctioned $28 billion in 3-month bills in denominations of $10,000 at a discount rate of 5.550%.

What would be the effective rate of interest? (Use calendar year. Do not round intermediate calculations. Round your answer to the nearest hundredth percent.)

Effective rate of interest