How are Treasury Bills rate of return calculated?
336515
Its a competitive bidding process.  Visit treasury direct for more details.  Attached below.  Hope this helped.
198236
Hi..\n\nRish free rate of return is equal to secured return i.e. return on Government bonds / securities. \n\nIn all the general business working - interest rate on govt. bonds / securities are taken as rate of risk free return.
9398
Calculates the payment for a loan based on constant payments and a constant interest rate.\n\nSyntax\n\nPMT(rate,nper,pv,fv,type)\n\nFor a more complete description of the arguments in PMT, see PV.\n\nRate   is the interest rate for the loan.\n\nNper   is the total number of payments for the loan.\n\nPv   is the present value, or the total amount that a series of future payments is worth now; also known as the principal.\n\nFv   is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.\n\nType   is the number 0 (zero) or 1 and indicates when payments are due.\n\nSet type equal to If payments are due \n0 or omitted At the end of the period  \n1 At the beginning of the period \n\n\nRemarks \n\nThe payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.\n\n\nMake sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12 percent for rate and 4 for nper. \n\nTip   To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.\n\nExamples\n\nThe following formula returns the monthly payment on a $10,000 loan at an annual rate of 8 percent that you must pay off in 10 months:\n\nPMT(8%/12, 10, 10000) equals -$1,037.03\n\nFor the same loan, if payments are due at the beginning of the period, the payment is:\n\nPMT(8%/12, 10, 10000, 0, 1) equals -$1,030.16\n\nThe following formula returns the amount someone must pay to you each month if you loan that person $5,000 at 12 percent and want to be paid back in five months:\n\nPMT(12%/12, 5, -5000) equals $1,030.20\n\nYou can use PMT to determine payments to annuities other than loans. For example, if you want to save $50,000 in 18 years by saving a constant amount each month, you can use PMT to determine how much you must save. If you assume you'll be able to earn 6 percent interest on your savings, you can use PMT to determine how much to save each month.\n\nPMT(6%/12, 18*12, 0, 50000) equals -$129.08\n\nIf you pay $129.08 into a 6 percent savings account every month for 18 years, you will have $50,000.
693280
In order to compute a precise answer, you need all of the following information:\n\nAmount of principle subject to interest (one penny)\nFrequency of Compounding\nInterest Rate\nand the formula for compound interest (more on this below)\n\nUnfortunately, the answer to your question at this point, would have to be: One penny after 30 days.\n\nHow did I get there?  Well I had to make some assumptions:\n\nFirst we derive the formula for compound interest:\n\nEnd of Period Balance = Beginning of Period Balance Principle + Interest\n\nInterest = Beginning of Period Balance (times) interest rate\n\nWith multiple compounds you have multiple calculations of interest and the interest is added to the balance each time so that the next calculation has interest computed on the new balance which includes the previous interest.\n\nWhether you are looking at multiple years or multiple compounds in a year, you initially have interest on the principle then you have interest on the principle and interest on the prior interest, which is the "compounding".\n\nIt's not very reasonable for me to assume the interest rate (which was not given in the question) is significantly higher than currently available interest rates in the marketplace.  The question suggests the scenario is saving money, not paying bills.  Current interest rates on savings are well below 5 percent per year (closer to one percent per year).  Ask your local bank what interest rate they'll pay you on a simple savings account.\n\nIf the interest rate were 12 percent per year, and you compounded monthly then you could express the interest rate per period as 0.12 / 12 = 0.01 or one percent per month.\n\nOne percent per month would be a sizeable amount on a sizeable purchase, but one percent on a penny is one one-hundredth of a penny - hardly noticiable and most likely lost in the calculations.\n\nIt gets worse when you compound daily in this case\n\nInt rate  = 0.12 / 365 = 0.00032876712328767123287671232876712\n\nThat's assuming 12 percent interest per year (too high to be a good assumption)...and the result of multipling that by a penny even once is too close to a penny to notice the difference.  Making the calculation a little easier, you can calculate the new balance after interest is paid by adding one to the interest rate resulting in the new balance (representing balance = 1 times amount subject to interest plus the interest)\n\n$0.01 times 1.00032876712328767123287671232876712\ntimes 1.00032876712328767123287671232876712\ntimes 1.00032876712328767123287671232876712\ntimes 1.00032876712328767123287671232876712\netc. for 30 multiplications would yield you\n\na balance of 1.0099101764966712808084001310017 pennies which is still to small to practically be anything but one penny.\n\nThe rule of 72 allows you to approximate how long it will take for an amount to double under compound interest.  divide 72 by the annual interest rate and the result is an approximation of the number of years.\n\n72% interest would double your money in one year\n12% interest would double your money in six years\n7.2% interest would double your money in ten years\n\nYou'd need to get approximately 72% x 12 interest rate (864% interest per year) to compound a penny into two pennies in a single month.\n\nI imagine that you'd like to re-ask with the missing details (interest rate) and set a higher starting value than an penny.  I've hunted down a calculator for your so you can do some what-iffing on your own.\n\n-EN-
625531
The formula is\nA = Pe^(rt), where A is the amount returned, P is the original amount, r is the interest rate, and t is the number of years.\nP = 2000\nr = 2% = .02\nA = 2000e^(.02t)\n"How long will it take?" means you are looking for t.\nIn order to find t, you will need to know A.
182443
Your question is confusing. The internal rate of return is the "interest rate" that one would earn for a particular "stream of income" - money going into the investment and money coming out of the investment. All of the payments (in or out) are determined by the individual investment so there is not standard.\n\nGenerally, the higher the rate of return the faster you would like to get out because the return will decline over time. That is a function of "leverage". If you buy something for $100,000 with $5,000 down and it appreciates by 5% in a year you would have earned 100% on the actual money you put into the transaction (the money is not in your pocket but it is equity). The longer you own it the more equity you will have. Say after 10 years it's worth $200,000 and say you still owe $100,000. If it appreciates 5% again you will have earned $10,000 (5% of $200,000) but you now have $100,000 equity now so your return that year is 10% not 100% like the first year.
166252
The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the effect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per month rate has an APY of 12.68% (1.01^12 -1).
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Here's the calculator:\n\nhttp://wwws.publicdebt.treas.gov/BC/SBCPrice
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UK government borrowing does not trade on the London Stock Exchange.  It is managed by the Debt Management Office on behalf of the UK Treasury.  Treasury Bill is a US term, in the UK government borrowing is referred to as Gilts.\n\nFollow the link below for more information.
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The effective annual rate of return taking into account the effect of compounding interest. APY is calculated by:\n\n= (1 + periodic rate) # of periods - 1\n\n \nThe resultant percentage number assumes that funds will remain in the investment vehicle for a full 365 days.
1119038
This is true.  July 1st of every year the variable interest rate of federal stafford loans (subsidized and unsubsidized) are adjusted based on how our economy is doing.  The formula used is an adjustment to the 91-day treasury bill auction results from the last week of May each year.  This formula is adjust periodically which is why students who borrowed loans prior to the fall of 1996 have slightly higher rates on those loans.\n\nTreasury bill rates have increased significantly in the last year student loans will also increase.\n\nCurrently if you have a Stafford loan and are in-school or in your grace period the interest rate is 4.7%.  If you are in repayment then your rate is 5.3%.  As of July 1, tomorrow, rates will increase to 6.54% for in-school or grace periods and 7.14% for repayment loans.  This is for loans you already have out in your name.  \n\nAlso because of legistlative changes all new loans borrowed after July 1, 2006 will have a fixed interest rate of 6.8%.  (This change was made several years ago.)\n\nIf you currently have loans you can opt to consolidate them by midnight tonight which allows you to lock into your current interest rate, rounded to the nearest 1/8%.  There are several consolidation questions which I have responded to that tell you how to go about that or you can contact me.
252933
I think what you are referring to is called compound interest.  That is when your interest is paid on a regualr basis, like mnthly.  So in the following month you get interest on your principle and the interest you received from the previous months.  This reults in a overall higher rate of return.
1010683
If you take out a loan, the amount you are loaned is called the "principle". The bank loans it to you at a certain rate called the interest rate. You have to pay back the principle, PLUS the interest, over the life of the loan.\n\nIf your loan has compound interest, you not only have to pay back interest on the principle, but interest on the unpaid interest itself. To compute the amount of compound interest, you have to take the "life" of the loan (the amount of time the principal is loaned for) and divide it by some interval, called a payment interval. You also divide the interest rate by the same interval. Then you can compute the amount of unpaid interest over that interval, and the interest on the interest.\n\nIn continuous compounding, the payment interval is essentially zero, resulting in an infinite number of infinitely small payments. It turns out that for problems of this type, there is a mathematical limit toward which the payment converges as the interval gets closer and closer to zero; so you can use that mathematical limit to determine the amount of the interest under continuous compounding.
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Accounting Rate of Return\nPayback Period\nNet Present Value\nInternal Rate of Return
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if q is de debt to equity ratio, then D=qE, where D is debt and E is equity. Since assets is equal to debt + equity, then A (assets)=D+E=qE+E=E(q+1)\nflow for equity holder is\nA xR -D x i , where R is return on assets and i is interest rate.\nThus, Return on Equity=R(q+1)-qi
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Treasury notes, sometimes called T-Notes, earn a fixed rate of interest every six months until maturity. Notes are issued in terms of 2, 3, 5, and 10 years.\n\nTreasury bills, or T-bills, are sold in terms ranging from a few days to 26 weeks. Bills are sold at a discount from their face value. For instance, you might pay $970 for a $1,000 bill. When the bill matures, you would be paid $1,000. The difference between the purchase price and face value is interest.
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First you need to know the cost of one unit which should be on a previous bill. Thenn simply multiply the cost for one unit by the numer of units you have used. ie - used 35 units at a cost of say £1.112 a unit you would do , 35x1.112 giving you £38.92 =)