Question

4.

What would be the purchase price for a $5,000, 91-day T-bill paying 3%
interest?
a. $4,925.00
b. $4,962.50
C. $5,000.00
d. $5,037.50​

Answer 1

B

Explanation:

A = P(1+i/n)^t

5000 = P(1+0.03/(361.3/91)^1 361.3 ??? it worked

P = 5000/1.007556048

P = $4962.50309

the 91 day T-bill confused by financial calculator which got $4962.78 for a quarterly compound interest rate