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11 September, 18:17

A $120,000, 5%, 200-day note dated June 6 is discounted on October 8. The discount period is how many days?

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  1. 11 September, 21:27
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    June: 30-6=24

    July: 31

    August:31

    September:30

    October: 8

    Total=24+31+31+30+8=124 days

    Discount period:

    The period of time between the date a bill of exchange is drawn and the date on which payment is due.

    So discount period = 200-124=76 days
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