mwekez@ji wrote:Impunity wrote:T-Bill computation is NOT done in the simple layman way you are imagining...the %age for T-Bill may e higher than that of Fixed bank depos but in absolute terms the results from computation is not the same.
How many strong D's did you score in maths in your entire lower classes?
SMH ... that choice of words .... na wewe ni chief #Shame
....
you should know that interest on TBill is paid upfront unlike in Fixed Deposits. Reinvest the interest and watch the returns shoot way up past the already juicy levels
.... bottom line: The Tbill return is higher than Fixed Deposit return. Thats why Faulu (and other banks) will take your money, put it in Tbills and make profit out you
.... tafakari hayo
No; No; No!
This is a common misconception. T-Bill interest is paid ON MATURITY.
The fact that you pay, say 97,000 for a 100,000 Bill doesn't mean that you are getting the 3,000 interest up-front!
And when you roll-over the bill, the payment you get is not the interest but a refund...same as the change you get in a shop....even though it is numerically equal to the interest!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.