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qid 419 · business
Question: A noninterest-bearing note with a face value of $600 and a term of 30 days dated April 5 was discounted April 15 at a rate of 5%. What were the proceeds?
- $597.50
- $599.33
- $596.67
- $595
- $604.17
- $601.67
- $598.33
- $600
- $603.33
- $602.50
Our answer: G. $598.33 Source quote machine-checked (exact quote)
How it was answered
Stored method, replayed by code (kind: formula)
Current source
AJ Design, "Bank Discount Calculator"
https://www.ajdesigner.com/bank-discounts/
“Bank discount equals maturity value times discount rate times time”
Source quote machine-checked (exact quote)
Earlier version (superseded)
No public source has been found for this card yet (2 places checked internally).
If you have a Citable Source to dispute or challenge this, ADD IT so we can correct the answer by appending, never deleting. — hello@lianabanyan.com