Molly Lenny bought a $10,000 13-week Treasury bill at 13%. What is her effective rate? Use...

Question

Question

business accounting

Answer 1

Answer #1

The correct answer is 13.65%

Calculation

Effective interest rate

= (1+(i/4))^n-1

= (1+(.13/4))^4-1

=1.1365-1

=.1365

Or = 13.65 %

Thus the correct answer is 13.65%

Answer 2

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