Professional Documents
Culture Documents
On Bank Discounts
On Bank Discounts
Bank Discount
• Bank discount or simply discount – is the charge on
business loans on the Final amount rather than on
the Present value. Discount like simple Interest is
also an amount paid for borrowing money. However,
unlike simple interest, discount is charged in advance.
• Proceeds- is the money which the borrower receives
• Discount rate – percent used in computing the
discount