4 years ago

A $120,000, 5%, 200-day note dated June 6 is discounted on October 8. The discount period is how many days?

1 answer:

5 0

June: 30-6=24
July: 31
August:31
September:30
October: 8
Total=24+31+31+30+8=124 days

Discount period:
The period of time between the date a bill of exchange is drawn and the date on which payment is due.

So discount period = 200-124=76 days

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