What are the total discount and rate of return

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1. A local company has a bid of $89.56 on a 180-day U.S. Treasury bill of $20,000. What is the purchase price, and what are the total discount and rate of return expressed in interest and discount terms?

2. $2,500 is left in an account that pays 7½% interest rate for 4 years. Calculate how much it would grow to (a) if the rate of interest is simple and (b) if the rate is compound.

Reference no: EM131307349

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