To find out the value of a Treasury bill that we can pay the most, with this specific return rate, we can use the simple interest formula. Let this value be P. It is important to say: We're also using an equivalence for time for 26 weeks it is half a year, 180 days over a financial year of 360 days. And for i, we're plugging in 1%=0.01
the most you should pay for the T-bill is $4975.12
Step-by-step explanation:
If you want 1% per year, you will want 0.5% in 26 weeks [52 weeks in a year].
Hence, the face value would be 100.5% of your investment that you make. Thus we can create an equation as [letting x be the amount invested, amount you should pay]:
Solving gives us:
Thus, the most you should pay for the T-bill is $4975.12