If a $10,000 T-Bill Is Purchased for $9,600 and Matures

question 12

Essay

If a $10,000 T-bill is purchased for $9,600 and matures in 270 days,what will be the annualized return? (Round to the nearest one hundredth of a percent.)
(a)4 percent
(b)4.17 percent
(c)5.63 percent
(d)2.85 percent

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Definitions:

General Fund

A main operating fund in governmental accounting, covering most basic services and activities.

Direct Increase

An increase in the value or quantity of an asset or account directly due to additional investments or improvements, rather than through earnings.

Capital Assets

Long-term assets acquired for use in business operations, expected to be used or held for more than one financial period.

Capitalized

Costs that are recognized as part of an asset on the balance sheet rather than being expensed, often related to the acquisition or construction of a long-term asset.