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Unformatted text preview: NAME: 1‘4 17m; L NS W' Ed? 1‘ Student Number:
0 MA 170 QUIZ 1 Fall 2010
Investor A buys a $10,000 364day Tbill for $9,820.77.
(a) If Investor A were to hold the T—bill to maturity, what rate of interest would she earn? (b) After 206 days, Investor A sells the Tbill to Investor B at a simple discount of2. 10%. What
is the selling price? (c) What rate of interest did Investor A earn on the Tbill over the 206 days she held it? 6 .
Note: 7 marks each part. Total mark w1ll be recorded out of 17. Round dollar amounts to the
nearest cent. Give interest rates as percentages, rounded to two places of decimals. 513901 1 IMWMM N a“) J
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+ MA 170 QUIZ 1 Fall 2010 Investor A buys a $25,000 182—day Tbill for $24,775.16.
(a) If Investor A were to hold the Tbill to maturity, what rate of interest would she earn? (b) After 84 days, Investor A sells the Tbill to Investor B at a simple discount of 1.90%. What is
the selling price? (c) What rate of interest did Investor A earn on the Tbill over the 84 days she held it? Notei/marks each part. Total mark will be recorded out of 17. Round dollar amounts to the nearest cent. Give interest rates as percentages, rounded to two places of decimals. ) _ N W
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This note was uploaded on 03/03/2012 for the course MATH 170 taught by Professor F.vinette during the Fall '11 term at Wilfred Laurier University .
 Fall '11
 F.Vinette
 Math

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