Question

Assume the $10,000 Treasury bill, 6% for 13 weeks. Calculate the effective rate of interest.

Answer 1

Mike, your question seems incomplete. What's y our principal? What's your amount (accumulation over 13 weeks)?

Answer 2

Can you please explain your question?

Answer 3

If you put $1000 in your bank account tomorrow, that'd be your PRINCIPAL (the amunt invested). If you leave that money in the bank for 1 year, earning 5% interest per year, compounded annually, you'd have more $ than you started with, because the bank would pay you interest; Your PRINCIPAL plus INTEREST would add up to your AMOUNT.

I'm asking you to identify your PRINCIPLE and AMOUNT.

Answer 4

Assume the $10,000 Treasury bill, 6% for 13 weeks. Calculate the effective rate of interest. (Use calendar year. Round your answer to the nearest hundredth percent.)
This is all the info that was given to me.

Answer 5

I'm just vaguely familiar with Treasury bills.

My conception of them (which might be wrong) is that you buy one at a discount from face value, hold it for one year, and then cash it in for face value.

For example, suppose you purchase a $10,000 Treasury bond for $9,100, which supposedly pays 6% interest, and hold it for 13 weeks before cashing it in for the $10,000 face value. I'm afraid I'm missing some key info here (not your fault!). In your shoes I'd do an Internet search for "treasury bond effective interest" and look for an example of finding "effective interest rate" when a nominal interest rate (such as 6%) is given.

Really sorry, but I'm afraid you'll have to do that, or hope to find a tutor better informed about "effective interest rates," or both.