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.
(c) What is the difference between the two future values?