SOLUTION: What is the annual interest rate earned by a 33-day T- bill with a maturity value of P 1,000 that sells for P 996.16? (Use 360 days for a year)

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Question 1186450: What is the annual interest rate earned by a 33-day T- bill with a maturity value of P 1,000 that sells for P 996.16? (Use 360 days for a year)
Found 2 solutions by ikleyn, MathTherapy:
Answer by ikleyn(52805)   (Show Source): You can put this solution on YOUR website!

Answer by MathTherapy(10553)   (Show Source): You can put this solution on YOUR website!

What is the annual interest rate earned by a 33-day T- bill with a maturity value of P 1,000 that sells for P 996.16? (Use 360 days for a year)
Apply the FUTURE VALUE formula, based on SIMPLE IMTEREST, which is: , with 

 then becomes: 

                                 11R(31.13) = .12(120) ------- Cross-multiplying

Annual Interest rate or  

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