Question
A financial analyst draws a cash flow diagram to model the following scenario. A 90-day commercial bill will mature for $400000. The price paid for
A financial analyst draws a cash flow diagram to model the following scenario.
A 90-day commercial bill will mature for $400000. The price paid for the bill at issue was $397325.4. The bill was sold 44 days after issue for $395584. Calculate the annual rate of simple interest (as a percentage, to two decimal places) earned by the buyer who paid $397325.4 and sold for $395584. What was the annual rate of simple discount (as a percentage, to two decimal places) that the buyer sold at (earning a price of $395584)?
Here is the cash flow diagram the analyst drew.
A financial analyst draws a cash flow diagram to model the following scenario. A 90-day commercial bill will mature for $400000. The price paid for the bill at issue was $397325.4. The bill was sold 44 days after issue for $395584. Calculate the annual rate of simple interest (as a percentage, to two decimal places) earned by the buyer who paid $397325.4 and sold for $395584. What was the annual rate of simple discount (as a percentage, to two decimal places) that the buyer sold at (earning a price of $395584)? Here is the cash flow diagram the analyst drew. V U S Investor w Z X Which response best reflects the values of Z, Y, X, W, V, U, T and S? O a. Z is 90.00, Y is $400000.00, X is $397325.40, W is 44, V is $395584.00, U is not required, T is 7.90% p.a. (simple discount) and Sis -4.10% p.a. (simple interest). b. Z is 90.00, Y is $400000.00, X is $397325.40, W is 44, V is $395584.00, U is not required, I is 8.76% p.a. (simple discount) and Sis -3.64% p.a. (simple interest). O c. Z is 90.00, Y is $400000.00, X is $397325.40, W is 44, V is $395584.00, U is not required, T is 8.66% p.a. (simple discount) and Sis - 3.54% p.a. (simple interest). d. Z is 90.00, Y is $400000.00, X is $397325.40, W is 46.00, V is $395584.00, U is not required, T is 9.16% p.a. (simple discount) and Sis -3.48% p.a. (simple interest)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started