Assuming a 360-day year, proceeds of $47,000 were received from discounting a $47,910, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a.9.35% b.7.60% c.5.6% d.8.84%

Assuming a 360-day year, proceeds of $47,000 were received from discounting a $47,910, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a.9.35% b.7.60% c.5.6% d.8.84%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 15P

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Question

Assuming a 360-day year, proceeds of $47,000 were received from discounting a $47,910, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was

a.9.35%

b.7.60%

c.5.6%

d.8.84%

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