1. A $10,000 T-bill matures on October 1.It was sold on June 17 at a simple discount rate of 3.54%.Find the amount for which it was sold. Show work.
2. A simple discount loan with a term of 275 days and a maturity value of $8,400 had proceeds of $8,132.58.Find the simple discount rate and find the simple interest rate.Clearly identify which is which. Show work.
3. A simple discount loan has a maturity value of $25,000, a term of 216 days, and a simple discount rate of 7 3/4%.Find the equivalent simple interest rate. Show work.
4. Tom is due a $789.95 paycheck in 10 days.A payday lender offers to give him cash today for this paycheck, taking as its fee a discount of 2.5%.Find the equivalent simple interest rate. Show work.
5. Hughie loans Dewey $4,000 for 270 days at 9.5% simple interest.100 days later he sells the note to Louie at an 8.25% simple discount rate.Find the amount that Hughie sold the note for and the simple interest rate Hughie earned on this deal.Show work.