Answered: Kai has $45,186.38 and he wants to buy… | bartleby

SWFT Essntl Tax Individ/Bus Entities 2020

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 45P

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Question

Please do it ASAP and correctly

Kai has $45,186.38 and he wants to buy a
$46,000.00 T-bill maturing on March 23,
2021. The annual discount rate is 9.000%.
What is the last possible day on which he
can still purchase the T-bill? (Use the ACT/
360 daycount convention.) (Think carefully
about the rounding issue. How much does
the T-bill actually cost on the day he buys it?
Hint: it's a little less than $45,186.38 but if he
waits one more day he wont be able to
afford it.)

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