Solve the Problem. -An Investor Buys a $20,000 T-Bill at a 7% Discount

question 55

Multiple Choice

Solve the problem.
-An investor buys a $20,000 T-bill at a 7% discount for 26 weeks. Find the effective interest rate. (Assume 52 weeks per year.)

• A)5.45%
• B)3.63%
• C)7.25%
• D)10.50%

---

Definitions:

1940s

The decade spanning from January 1, 1940, to December 31, 1949, marked by significant events such as World War II.

1950s

A decade noted for post-World War II recovery, the beginning of the Cold War, and significant cultural and technological advancements.

Whistle-Blowing

The act of reporting unethical, illegal, or harmful activities within an organization to authorities or the public, usually by a member of the organization.

Anonymity

The state of being anonymous, where an individual's identity is not known or disclosed.