What is the real rate of interest of discounting the bill of exchange in Question 45.1? Data

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What is the real rate of interest of discounting the bill of exchange in Question 45.1?

Data from Question 45.1

(a) If you were lent £17,000 for 64 days at 6 per cent, how much interest would you pay?

(b) If a debt factor offered to discount a £4,000 bill of exchange at 12 per cent, and if the bill had an outstanding period of 120 days, how much would the debt factor pay for the bill?

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Frank Woods Business Accounting Volume 2

ISBN: 9780273693109

10th Edition

Authors: Frank Wood, Alan Sangster

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Question Posted: Sep 10, 2023 10:20 AM

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What is the real rate of interest of discounting the bill of exchange in Question 45.1? Data

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The nominal rate of interest is 12 and the inflation rate is not given Therefore we can as...View the full answer

Frank Woods Business Accounting Volume 2

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