Solve the problem.
-Henry Smith buys a $60,000 T-bill at a 6.9% discount for 30 weeks. Find the purchase price of the T-bill. (Assume 52 weeks per year.)
A)$55,223.08
B)$57,611.54
C)$58,805.77
D)$57,372.69

Question

Quizplus · Accepted Answer

First, we need to find the discount on the T-bill. The discount can be calculated using the formula:
Discount = Face value x Rate x Time

Here, Face value = $60,000, Rate = 6.9%, and Time = 30/52 years (since the discount is for 30 weeks, which is equivalent to 30/52 years).

Plugging in the values, we get:
Discount = $60,000 x 6.9% x 30/52 = $1,951.54

The purchase price of the T-bill is the face value minus the discount. Therefore, we have:
Purchase price = $60,000 - $1,951.54 = $57,611.54

So, the best choice is B, which gives the correct purchase price of the T-bill.

Solve the Problem. -Henry Smith Buys a $60,000 T-Bill at a 6.9% Discount