Calculating the selling price of a bank bill using simple interest, we find that Mark's selling price on 13 August 2021 for the $500,000 bank bill would be approximately $491,982.88, which does not match with any of the provided answer choices.
To calculate Mark's selling price of the 270-day $500,000 bank bill on 13 August 2021 at a yield of 3.6% p.a. simple interest, we first need to determine the number of days he held the bill. From 15 July 2021 to 13 August 2021, Mark held the bill for 29 days.
Since simple interest is used, the formula for calculating the interest earned or paid over a period of time is:
I = PRT
Where:
- I is the interest
- P is the principal amount ($500,000)
- R is the rate of interest per year (3.6% or 0.036)
- T is the time the money is borrowed for, in years
In Mark's case, the time (T) is 29/365 years because the interest rate is per annum. Now we need to solve the formula to find the accrued interest (I), which Mark will add to the purchase price to find the selling price.
The accrued interest is:
I = 500,000 * 0.036 * (29/365)
Using a calculator, we find that the interest (I) is approximately $1,432.88. The selling price is then the purchase price plus the accrued interest:
Selling Price = Purchase Price + Interest
Selling Price = $490,550 + $1,432.88
Selling Price = $491,982.88, which doesn't match with any of the provided options a, b, c, or d. It's possible there might be a mistake in the options or in the provided data. Please recheck the information given and the calculation process.