On February 15,Weber Services discounts a customer's 9%,90-day,$10,000 note dated January 10.The discount rate charged by the bank is 12%.The discount period is:
A)54 days.
B)36 days.
C)90 days.
D)0 days.

Question

Quizplus · Accepted Answer

The discount period is the time from the date of discounting (February 15) to the maturity date of the note. The note is dated January 10 and is for 90 days, so it matures on April 10. From February 15 to April 10 is 54 days.

On February 15,Weber Services Discounts a Customer's 9%,90-Day,$10,000 Note Dated