Question
A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills of equal nominal value
A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills of equal nominal value and with maturities at 45, 75 and 105 days respectively, applying on them an APR of 30% with bimonthly capitalization. If this merchant plans to discount the bills in a bank 15 days after the sale is made, being the effective discount rate 2% per month, find:
1. The face value of the bills.
2. The net cash value received on discounting the bills.
3. Calculate the discount.
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Accounting Information Systems basic concepts and current issues
Authors: Robert Hurt
3rd edition
130855849X, 978-1308558493, 78025338, 978-0078025334
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