Question

Assume the $10,000 Treasury bill, 4% for 13 weeks. Calculate the effective rate of interest.(Use calendar year. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Answer 1

Sorry but no I can't. Effective Rate is actually where I am having the Most trouble??

Answer 2

I can see above where you have figured out the Proceeds, but I do not see how to figure out the Effective Rate??

Answer 3

I am sorry, but I just do not follow how to do this??? What exactly do you need me to post?

Answer 4

Do you understand the below formula?
Effective rate of interest = interest / proceed * time

Answer 5

Not really? Sorry!

Answer 6

Do you know what you're looking for in your post?

Answer 7

Assume the $10,000 Treasury bill, 4% for 13 weeks. Calculate the effective rate of interest.(Use calendar year. Round your answer to 2 decimal places. Omit the "%" sign in your response.)




Effective rate of interest

%

Answer 8

This is the exact way it is posted on my homework site. I copied and pasted it.

Answer 9

No, don't just post the question!
Do you know what the question asking?

Answer 10

Its asking for the Effective rate of intrest as a %

Answer 11

YES, Effective rate of intrest !

Answer 12

Have you learned the formula to find Effective rate of interest?

Answer 13

No, this is an online class and I have not been in any acounting classes before. I am also 43 years old and have never had an online class til now, and I am only in my 2nd semester of colleuge ever.

Answer 14

This is the formula I've provided:
Effective rate of interest = interest / ( Proceed * Time )

Answer 15

Ok, I will try to figure it out. I apolgize for taking up so much of your time. Thank You once again!!!

Answer 16

Did you see the interest I've worked out?

Answer 17

All you do is plug the numbers into your calculator!

Answer 18

Is that the $100.00 at the top of our posts??

Answer 19

Interest = p * r * t
= 10,000 * .04 * 13/52 = $100

Answer 20

Yes, that part I understand.

Answer 21

Why do you ask the interest is 10,000 ???

Answer 22

Do you see the Proceed I also have worked it out ?

Answer 23

The Proceed is the $9900. correct?

Answer 24

All you do is to read:
Proceed = 10,000 - 100 = $9,900

Answer 25

Can you plug these worked out result into:
Effective rate of interest = interest / ( proceed * time )

Answer 26

I am sorry but I have to go, someone has just stopped over, and I am also feeling a bit stupid at this moment, I will go to the school tudor and perhaps I will get it then. Thanks again for all of your efforts and help!!!!!!

Answer 27

Okie, all you do is to plug the number in = 4.04