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16-10-2017
Mathematics

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jeff rakhnovich buys a 500000 t-bill at 2.5% discount for 36 weeks find the effective interest rate of APR assume 52 weeks per year

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Kalahira Kalahira

25-10-2017

This is solved as follows: $500,000* ((.025 * 36/52)+ 1)^-1 = $491,493.38 The effective interest APR is simply the bracketed term above which when evaluated will yield %1.73.

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