Asked by A
A man makes a simple discount note with a face value of $2,200, a term of 140 days, and a 9% discount rate. Find the discount.
Answers
Answered by
MathMate
Discount is calculated by the formula:
Discount
= Maturity value * discount rate * discount period.
Here I assume "face value" is what the bearer receives on maturity.
So discount
= 2200*0.09*140/365
= $75.95
You can read the following link for more details:
http://www.cliffsnotes.com/more-subjects/accounting/accounting-principles-i/receivables/discounting-notes-receivable
Discount
= Maturity value * discount rate * discount period.
Here I assume "face value" is what the bearer receives on maturity.
So discount
= 2200*0.09*140/365
= $75.95
You can read the following link for more details:
http://www.cliffsnotes.com/more-subjects/accounting/accounting-principles-i/receivables/discounting-notes-receivable
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.