Assuming a 360-day year, proceeds of $46,510 were received from discounting a $47,941, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a.13.18% b.13.69% c.9.94% d.11.94%

Assuming a 360-day year, proceeds of $46,510 were received from discounting a $47,941, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was a.13.18% b.13.69% c.9.94% d.11.94%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Question

Assuming a 360-day year, proceeds of $46,510 were received from discounting a $47,941, 90-day note at a bank. The discount rate used by the bank in computing the proceeds was

a.13.18%

b.13.69%

c.9.94%

d.11.94%

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