Question

Maxwell purchased $15,000 worth of 52-week T-Bills for $14,650. What will be the rate of return on his investment?

Answer 1

2.39%

Explanation:

Maxwell bought $15,000 worth of 52-week T-bills for $14,650

Therefore the rate of return on investment can be calculated as follows

= 15,000-14,650/14,650× 100

= 350/14,650 × 100

= 0.02389 × 100

= 2.39%

Hence the rate of return on this investment is 2.39%