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

Answer:

B

Step-by-step 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