Assuming you put 10000 on treasury bills and fix deposits, what will you get in return as profit for six…

Question

Assuming you put 10000 on treasury bills and fix deposits, what will you get in return as profit for six months

ScanSolve AI Tutor · Accepted 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):

Convert annual rate to 6-month rate.
6-month rate = 5% / 2 = 2.5%
Calculate profit.
Profit = 10,000 × 0.025 = **250**
- For Fixed Deposits (at 7% annual interest):
Convert annual rate to 6-month rate.
6-month rate = 7% / 2 = 3.5%
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.

Assuming you put 10000 on treasury bills and fix deposits, what will you get in return as profit for six months

Step-by-step solution

Convert annual rate to 6-month rate.

Calculate profit.

Convert annual rate to 6-month rate.

Calculate profit.

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