Simple Discount Notes
3. Discount Period = day number on Due Date - day number on Discount Date 4. Bank Discount = Maturity Value x Bank Discount Rate x Discount Period 5. Proceeds = Maturity Value-Bank Discount Procedure to work problems: 1. Always show all your work. 2. Draw a time line. 3. Label the beginning (Date of Note), the end (Due Date) of the time line ... ................
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