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How much would you pay for a Treasury bill that matures in 182 days and pays $10,000 if you require a 1.8% discount rate? Answer:
How much would you pay for a Treasury bill that matures in 182 days and pays $10,000 if you require a 1.8% discount rate?
Answer: Let C = what you would pay NOTE: THE ANSWER FOR C IS LISTED BELOW BUT I DON'T UNDERSTAND HOW TO SOLVE FOR C. PLEASE SHOW STEP BY STEP PROCESS FOR SOLVING FOR C INCLUDING THE CROSSING OUT OF NUMBERS WHILE SOLVING FOR C. THANK YOU
[($10,000 - C) / ($10,000)] times (360/182)= 0.018
[($10,000 - C) / ($10,000)] times 1.978= 0.018
[($10,000 - C)]= 0.018 times $10,000 divided by 1.978
$10,000 - C= 91
C= $9,909
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