Calculate the Simple Rate of Return on a $1,000,000 181-Day

question 117

Multiple Choice

Calculate the simple rate of return on a $1,000,000 181-day Treasury Bill that was issued for $970,639.

• A) 6.1%
• B) 5.9%
• C) 4.9%
• D) 5.5%
• E) 7.7%

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Definitions:

Production Function

A quantitative model that demonstrates how the inputs in the production process impact the goods or services output.

Supply Function

A mathematical expression that shows the relationship between the quantity of a good or service that producers are willing to sell and the price of the good or service.

Factor Price

The price of inputs used in the production of goods and services, such as labor wages or the cost of raw materials.

Production Function

An equation outlining how inputs translate into the output for an organization, a specific industry, or the economy at large for all potential input pairings.