If you pay $17 500 for a $20 000 face value one-year Treasury bill,what is the rate of interest you will receive?

Name: If you pay $17 500 for a $20 000 face value one-year Treasury bill,what is the rate of interest you will receive?
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Question

Quizplus · Accepted Answer

The interest earned is $20,000 - $17,500 = $2,500. The rate of interest is calculated as (Interest Earned / Initial Investment) * 100 = ($2,500 / $17,500) * 100 = 14.29%.

If You Pay $17 500 for a $20 000 Face