Question

grab bag
a $10,000 t - bill maturing in 83 days was sold for $10,087.22. find the simple discount and equivalent simple interest rates.
9 numeric 1 point
what is the simple discount rate (to two decimals)?
answer

Explanation:

Step1: Calculate discount amount

$D = 10000 - 10087.22 = -87.22$
(Note: Negative discount means premium; use absolute value for rate)

Step2: Apply simple discount formula

Simple discount rate formula: $r_d = \frac{|D|}{F \times t}$, where $t=\frac{83}{360}$
$r_d = \frac{87.22}{10000 \times \frac{83}{360}}$

Step3: Compute the rate

First calculate $t=\frac{83}{360} \approx 0.230556$
Then $r_d = \frac{87.22}{10000 \times 0.230556} \approx \frac{87.22}{2305.56} \approx 0.03783$
Convert to percentage and round to 2 decimals: $0.03783 \times 100 = 3.78\%$

Answer:

3.78%