Question

Robin purchased a $160,000 182-day T-bill discounted to yield 1.96%. When he sold it 45 days later, yields had dropped to 1.82%. How much did Robin earn?

Answer 1

The amount earned by Robin is $224

• Given the cost of 182-day T-bill = $160,000

If Robin is discounted to yield 1.96%, the amount yield is expressed as:

The yield of 1.96% = 1.96% of 160000

The yield of 1.96% = 0.0196 * 160000

The yield of 1.96% = $3136

Similarly, if the yield is dropped to 1.82%

The yield of 1.82% = 1.82% of 160000

The yield of 1.82% = 0.0182 * 160000

The yield of 1.82% = $2,912

Amount earned by Robin = $3136 - $2192

Amount earned by Robin  = $224

Hence the amount earned by Robin is $224

Learn more on discounts here: brainly.com/question/17745353