SOLUTION: Suppose you are looking to buy a $10,000 face value 13-week T-bill. If you want to earn at least 4% annual interest, what is the most you should pay for the bill?
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Question 1014533: Suppose you are looking to buy a $10,000 face value 13-week T-bill. If you want to earn at least 4% annual interest, what is the most you should pay for the bill? Answer by macston(5194) (Show Source):
You can put this solution on YOUR website! .
If you want 4% per year, you want 1% in 13 weeks.
$10000 is 101% of your investment.
Let x=amount you should pay:
1.01x=$10000
x=$10000/1.01
x=$9900.99
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ANSWER: The most you should pay is $9900.99.
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