A $120,000, 5% 200-day note dated June 6 is discounted on October 8. The discount period is _______ days.
a. 142
b. 67
c. 124
d. 76
C is wrong
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
D is correct the math above is correct
To find the discount period, we need to determine the number of days from the date the note was discounted (October 8) to the date it was issued (June 6).
To calculate the discount period, we can use the formula:
Discount period = Discount date - Issue date
First, let's find the number of days from June 6 to October 8:
June has 30 days, July has 31 days, August has 31 days, September has 30 days, and October has 8 days.
30 + 31 + 31 + 30 + 8 = 130 days
Therefore, the discount period is 130 days.
Therefore, the correct answer is option c. 124
To determine the discount period, we need to find the number of days from the date the note was dated (June 6) to the date it was discounted (October 8).
To do this, we need to consider that a year has 365 days and a leap year has 366 days. Since June 6 is before the end of June, we can assume that there are 30 days in June.
So, the number of days from June 6 to June 30 is 30 - 6 = 24 days.
Next, let's calculate the number of days from July 1 to October 8. We have 31 days in July, 31 days in August, 30 days in September, and 8 days in October, which can be represented as:
31 + 31 + 30 + 8 = 100 days.
Adding up the days from June 6 to June 30, and from July 1 to October 8, we get:
24 + 100 = 124 days.
Therefore, the correct answer is c. 124 days.