MA170wk2solns

# 0 1 r 91 365 1 1 r 91 365 25000 24771 49 r 0 24771 49

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24771 : 49 = 25000 ° 1 + r ° 91 365 ±± ° 1 1 + r ° 91 365 ± = 25000 24771 : 49 r = 365 91 ° 25000 24771 : 49 ° 1 ± : = 0 : 037 = 3 : 7% (b) After 40 days the t-bill is sold to investor B who wishes to yield 4%. Find the price of the t-bill. P = 25000 ° 1 + 0 : 04 ° 51 365 ±± ° 1 : = \$24861 : 05 (c) What yield rate did investor A earn? Express your answer as a percentage with one decimal place. I = P rt 24861 : 05 ° 24771 : 49 = 24771 : 49 r ° 40 365 ± r = ° 365 40 ± 89 : 56 24771 : 59 : = 0 : 03299081730 : = 3 : 3% GRADE: 32 32 3
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