Provide an Appropriate Response $$\mathrm { A } = \mathrm { P } ( 1 + \mathrm { rt } )$$

question 219

Short Answer

Provide an appropriate response.
-Using A $$\mathrm { A } = \mathrm { P } ( 1 + \mathrm { rt } )$$ rt), the future value formula for a simple interest investment, derive the formula for r, the rate
of simple interest.

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Definitions:

T-bill

Treasury bill, a short-term government security with a maturity of less than one year, used to finance the national debt.

Simple Interest

The calculation of interest paid or received over a certain period that is based only on the principal amount, not including interest on interest.

Promissory Note

A financial instrument containing a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.

Treasury Bill

A short-term government debt instrument issued at a discount from the face value and pays no interest before maturity.