Question Solved1 Answer Is my answer and solution correct? If not, why? Thank you! I followed the process for a Bank Discount Note (BDN) as taught in class: 1. determine discount period 2. determine proceeds Problem: What is the proceeds of a $6,500 bank discount note that is payable at the end of 6 months but discounted after 3 months at 15% discount interest rate? Solution: F-F6500 m.d = 6 months d.d - 3 months d = 15% -).15 discount period - co months - 3 months 3 months . Pra F (1-dt) 6500[1-(.15)(3/12)] 6256.25 Php

JUZPA7 The Asker · Accounting

Is my answer and solution correct? If not, why?
Thank you!

I followed the process for a Bank Discount Note (BDN) as taught in class:
1. determine discount period
2. determine proceeds

Problem:
What is the proceeds of a $6,500 bank discount note that is payable at the end of 6 months but discounted after 3 months at 15% discount interest rate?

Solution:

Transcribed Image Text: F-F6500 m.d = 6 months d.d - 3 months d = 15% -).15 discount period - co months - 3 months 3 months . Pra F (1-dt) 6500[1-(.15)(3/12)] 6256.25 Php
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Transcribed Image Text: F-F6500 m.d = 6 months d.d - 3 months d = 15% -).15 discount period - co months - 3 months 3 months . Pra F (1-dt) 6500[1-(.15)(3/12)] 6256.25 Php
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Your Discount period calculated is correct, as "the discount period is the period between the last day on which the discount terms are still valid and the date when the invoice is ... See the full answer