A financial analyst draws a cash flow diagram to model the following scenario. A 90-day commercial bill will mature for $200000. The price paid for the bill at issue was $196041.05. The bill was sold 19 days after issue for $196735.95. Calculate the annual rate of simple interest (as a percentage, to two decimal places) earned by the buyer who paid $196041.05 and sold for $196735.95. What was the annual rate of simple discount (as a percentage, to two decimal places) that the buyer sold at (earning a price of $196735.95)? Here is the cash flow diagram the analyst drew.

Which response best reflects the values of Z, Y, X, W, V, U, T and S?

a.

Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 7.84% p.a. (simple discount) and S is 9.24% p.a. (simple interest).

b.

Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 8.39% p.a. (simple discount) and S is 6.81% p.a. (simple interest).

c.

Z is 90.00, Y is $200000.00, X is $196041.05, W is 19, V is $196735.95, U is not required, T is 8.29% p.a. (simple discount) and S is 6.91% p.a. (simple interest).

d.

Z is 90.00, Y is $200000.00, X is $196041.05, W is 71.00, V is $196735.95, U is not required, T is 31.35% p.a. (simple discount) and S is 1.82% p.a. (simple interest).

A financial analyst draws a cash flow diagram to model the following scenario. A 90-day commercial bill will mature for $200000. The price paid for the bill at issue was $196041.05. The bill was sold 19 days after issue for $196735.95. Calculate the annual rate of simple interest (as a percentage, to two decimal places) earned by the buyer who paid $196041.05 and sold for $196735.95. What was the annual rate of simple discount (as a percentage, to two decimal places) that the buyer sold at (earning a price of $196735.95)? Here is the cash flow diagram the analyst drew. s Investor N w T