Ramona has decided that she will only purchase a one-year Treasury bill with a face value of $15 000 if she receives an interest rate of 4.125%.How much will Ramona end up paying for this Treasury bill?

Question

Quizplus · Accepted Answer

The formula for calculating the price of a Treasury bill is:

Price = Face Value / (1 + (Interest Rate x Days until Maturity) / 365)

In this case, the face value is $15,000 and the interest rate is 4.125%. The number of days until maturity is not specified in the question, so we can assume it is 365 (one year).

Plugging these values into the formula:

Price = 15,000 / (1 + (0.04125 x 365) / 365)
Price = 15,000 / 1.04125
Price = $14,405.76

Therefore, the correct answer is C.

Ramona Has Decided That She Will Only Purchase a One-Year