This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
To calculate the exact profit, we would need the specific interest rates for both treasury bills and fixed deposits at that particular time, as these rates fluctuate. However, I can give you an example based on typical rates: Let's assume: A 6-month treasury bill* offers an annual interest rate of 5%. A 6-month fixed deposit* offers an annual interest rate of 7%. Here's how the profit would be calculated for a 10,000 investment over six months: For Treasury Bills (at 5% annual interest): Step 1: Convert annual rate to 6-month rate. 6-month rate = 5% / 2 = 2.5% Step 2: Calculate profit. Profit = 10,000 × 0.025 = 250 For Fixed Deposits (at 7% annual interest): Step 1: Convert annual rate to 6-month rate. 6-month rate = 7% / 2 = 3.5% Step 2: Calculate profit. Profit = 10,000 × 0.035 = 350 Based on these example rates, the fixed deposit would yield a higher profit. Remember, actual returns depend on the prevailing rates when you make the investment. 4 down, 1 left today. What's next?