This is the formula to count bank discount - D=Sdt
Where D = Bank discount
S = Amount of maturity value
d = Discount rate
t = Term of discount in years
The net amount received by the borrower is called the proceeds.
The proceeds, P, are computed as follows:
Depends on the questions, there are 3 ways to calculat proceeds:
P=S-D
P=S-Sdt
P=S(1-dt)
Example:
Jenny borrows RM1000 for 3 months from Diddy who charges a discount rate of 10%. Find
Jenny borrows RM1000 for 3 months from Diddy who charges a discount rate of 10%. Find
a) the discount
D = sdt
D = 1000 x 0.1 x 3/12
= RM 25
b) the proceeds
P = S - D
P = 1000 - 25
= RM 975
It's quite easy, right?
Well,
Till then,
Zamir
D = sdt
D = 1000 x 0.1 x 3/12
= RM 25
b) the proceeds
P = S - D
P = 1000 - 25
= RM 975
It's quite easy, right?
Well,
Till then,
Zamir
5 comments:
is this what we called rebate?
if I learn this maybe it will be easy to me :)
but for now... still errrr ~ :$
yup! lebih kurang rebate la!
if d=4.8%
s=8700
t=x?
can you solve it for me ?
where did you get 3/12?
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