Hello! to finance and account experts in the house. please help me clear my confusion on treasury bill investment in Nigeria.

Sometimes banks who serve as CBN agent in the issuance of treasury bill, do not exercise the principle of utmost good faith when dealing with customers.

Assume the stipulated interest rate says 13.9% on 91days bill, 17% on 180days bill etc. please what should be the right computation of interest earned on a principal of 120,000?

17 percent of principal divided by 365 day times 180 days. Thats all. Hope you knw they will charge u 10percent for tax on the interest. Btw wat bank is that?

collinsVP:
Hello! to finance and account experts in the house. please help me clear my confusion on treasury bill investment in Nigeria.

Sometimes banks who serve as CBN agent in the issuance of treasury bill, do not exercise the principle of utmost good faith when dealing with customers.

Assume the stipulated interest rate says 13.9% on 91days bill, 17% on 180days bill etc. please what should be the right computation of interest earned on a principal of 120,000?

cmoney22222:
17 percent of principal divided by 365 day times 180 days. Thats all. Hope you knw they will charge u 10percent for tax on the interest. Btw wat bank is that?

Thanks a lot.

I was telling someone that the 17% interest was an annual interest rate. That any investment duration short of one year, will bring about a proportionate recalculation of interest given.