Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mercury 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
Mercury 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 they 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 8.29% p.a. (simple discount) and S is 6.91% p.a. (simple interest). b. 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). 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 8.39% p.a. (simple discount) and S is 6.81% p.a. (simple interest). d. 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). Clear my choice
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