Question
1. What is the price of a $50,000, 182-day T-bill on its issue date if on this date the market rate of interest was 6.875%
1. What is the price of a $50,000, 182-day T-bill on its issue date if on this date the market rate of interest was 6.875% p.a. simple interest?
a. $48,342.77 b. $48,262.15 c. $48,285.96 d. $48,148.14
2. You invested $7500 in a savings account that pays interest of 3.6% compounded monthly. What is the value of your investment after 17 months?
a. $7,365.70 b. $13,682.87 c. $7,891.82 d. $7,541.45
Can you please explain the answers too?
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Private Equity Mathematics
Authors: Oliver Gottschalg
1st Edition
1908783508, 9781908783509
