Annual percentage rate of return


Problem:

Suppose you pay $9,800 for a $10,000 par Treasury bill maturing in 2 months.

Required:

Question: What is the annual percentage rate of return for this investment?

  • 2.04%
  • 12 %
  • 12.24%
  • 12.89%

Note: Be sure to show how you arrived at your answer.

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Finance Basics: Annual percentage rate of return
Reference No:- TGS0880111

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