Luke purchased a 180-day $500, 000 bank bill on 1 January 2019 at a yield rate of 3.18% p.a. (simple interest rate). He sold this bank bill on 15 April 2019 at a yield rate of 3.06% p.a. (simple interest rate).

[2 marks] Assume that Luke borrowed money to purchase the bill at the price of $495, 000 at a interest rate of 3.3% and decided to sell the bank bill after 100 days. What price must the bill be sold after 100 days for Luke to break even on his investment (rounded to 2 decimal places)?

1 mark for the correct equation to calculate the repayment.

0.5 mark for the correct repayment.

0.5 mark for the correct sale price

Here is students answer

Sale price = repayment= 49500 (1+ 3.3%*100/365) = 49947.53

How many marks for this

1. 2
2. 1
3. 0
4. 0.5