A $5,500,10% note dated May 20 for 78 days was discounted on June 23 at 12%.The number of days in the discount period is:
A)78 days.
B)39 days.
C)44 days.
D)some other number.

Question

Quizplus · Accepted Answer

First, we need to find the maturity date of the note:
May 20 + 78 days = July 7

Next, we need to find the discount period:
June 23 - May 20 = 34 days

Finally, we need to find the remaining days to maturity:
July 7 - June 23 = 14 days

Since the note was discounted on June 23, and the discount period is the period between the date of the discount and the maturity date, the number of days in the discount period is 34 days.

A $5,500,10% Note Dated May 20 for 78 Days Was