for this assignment, you submit answers by questions. you are required to use a new randomization after…

for this assignment, you submit answers by questions. you are required to use a new randomization after every 1 question submissions. assignment scoring your best submission for each entire question is used for your score. - / 1 points 0/5 submissions used an investor purchases a t - bill with a face value (maturity value) of $1,000 for $986. if the term of the t - bill is 8 months, what is the annual simple interest rate (in percent)? round to the nearest tenth of a percent. show my work (optional) submit answer view previous question question 5 of 10 view next question

for this assignment, you submit answers by questions. you are required to use a new randomization after every 1 question submissions. assignment scoring your best submission for each entire question is used for your score. - / 1 points 0/5 submissions used an investor purchases a t - bill with a face value (maturity value) of $1,000 for $986. if the term of the t - bill is 8 months, what is the annual simple interest rate (in percent)? round to the nearest tenth of a percent. show my work (optional) submit answer view previous question question 5 of 10 view next question

Answer

Explanation:

Step1: Calculate the interest amount

The interest $I$ is the difference between the face - value and the purchase price. So, $I = 1000 - 986=14$.

Step2: Convert the time period to years

The term of the T - bill is $t = 8$ months. Since there are 12 months in a year, $t=\frac{8}{12}=\frac{2}{3}$ years.

Step3: Use the simple - interest formula $I = Prt$ to find the rate $r$

We know $I = 14$, $P = 986$, and $t=\frac{2}{3}$. Rearranging the formula $I = Prt$ for $r$, we get $r=\frac{I}{Pt}$. Substitute the values: $r=\frac{14}{986\times\frac{2}{3}}$. First, calculate $986\times\frac{2}{3}=\frac{1972}{3}$. Then $r=\frac{14\times3}{1972}=\frac{42}{1972}\approx0.0213$.

Step4: Convert the rate to a percentage

To convert the decimal to a percentage, multiply by 100. So, $r = 0.0213\times100 = 2.13%$. Rounding to the nearest tenth of a percent, $r\approx2.1%$.

Answer:

$2.1$