Solve the Problem. -Randy Hunter Buys a $30,000 T-Bill at a 5.4% Discount

question 54

Multiple Choice

Solve the problem.
-Randy Hunter buys a $30,000 T-bill at a 5.4% discount for 24 weeks. Find the interest earned on the T-bill. (Assume 52 weeks per year.)

• A)$373.85
• B)$747.69
• C)$1,495.38
• D)$822.46

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Definitions:

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one additional unit of a good or service.

Milk Shakes

A cold beverage made from milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, or chocolate syrup.

Marginal Utility

The change in satisfaction or utility an individual gains from consuming an additional unit of a good or service.

Consumer Surplus

The gap between what consumers are ready to pay for a product or service and the actual amount they spend.