Math Problem Statement
An investor purchases a T-bill with a face value (maturity value) of $1,000 for $986. If the term of the T-bill is 8 months, what is the annual simple interest rate (in percent)? Round to the nearest tenth of a percent.
Solution
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Math Problem Analysis
Mathematical Concepts
Simple Interest
Percentage
Time Conversion
Formulas
I = P * r * t / 100
r = (I * 100) / (P * t)
Theorems
Simple Interest Theorem
Suitable Grade Level
Grades 10-12
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