Question

At a discount of 3% for a one- year treasury bill, an investor paid 970.87 pesos. How much will the investor received at maturity??

Answer 1

$p=970.87(1-\frac{dr}{360})$

$=970.87(1-\frac{0.03}{360})$

$=970.87(1-0.00008333)$

$970.87\times0.99991667$

$=970.7891$

Because you're buying a 970.87 pesos Treasury bill instead of one for 100 pesos, multiply 970.7891 by 10 to get the final price of 9707.891 pesos