Sarcosuchus Corporation offers very short-term loans to applicants with low credit ratings. They charge an interest rate of 0.03333 percent per hour. a. If you borrow $100 from Sarcosuchus, how much will you owe in one week? b. If you borrow $100 from Sarcosuchus, how much will you owe in one month (30 days)? c. What annual rate is Sarcosuchus charging? Hint: Convert the simple hourly rate of 0.03333 percent into simple annual rate.

Treasury bills are short-term government bonds, which pay the lender a fixed amount of cash on the maturity date. Suppose Jen Franklin obtains a T-Bill that will pay her $1,000,000 in exactly 38 days from now. She purchased the T-Bill today for $995,555.55. a) Calculate the simple annual interest rate that Jen will earn if she holds the T-Bill until it matures. b) Calculate the bond equivalent yield that Jen will earn if she holds the T-Bill until it matures. Hint: bond equivalent yield is the same as annual rate, compounded semiannually