Suppose you are looking to buy a $5000 face value 26-week t-bill. if you want to earn at least 1% annual interest, what is the most you should pay for the t-bill?

the most you should pay for the T-bill is $4975.12

Step-by-step explanation:

If you want 1% per year, you will want 0.5% in 26 weeks [52 weeks in a year].

Hence, the face value would be 100.5% of your investment that you make. Thus we can create an equation as [letting x be the amount invested, amount you should pay]:

Solving gives us:

Thus, the most you should pay for the T-bill is $4975.12