Simple Discount Exercise
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Discount exercise solution Discount formulas versione pdf

 

Exercise n. 1                                                    exact time = the year is based on 365 days /  ordinary time = the year is based on 360 days

Mary Ellen has a bill of exchange (cambiale) with a face value (valore nominale) of 3,500, a term of 180 days, and a 14% discount rate. Find the discount proceeding the bill today (use the exact simple discount) 

  241.64
  258.36
  234.67
  245.00

Find the proceeds (PV) 

  234.67
  3,255.00
  3,258.36
  5,178

Exercise n. 2  

A debt (debito) of 2,000 with a simple annual discount rate of 14% was made on May 10 and was due on August 14. Find the discount using ordinary time if the debtor would pay on June 14. 

 
  47.44
  46.03
  46.67
  46.79

Exercise n. 3  

Find the discount on 2,350 for six months if the discount rate is 7.2%. 

 
  8.46
  84.60
  169.20
  42.30


Exercise n. 4

Find the proceeds on a  draft (cambiale tratta) of 3,200 at 8% exact time. It was issued on March 18, due November 13 and sold to a bank on June 13. 

  3,368.33
  3,092.69
  3,167.91
  2,999.58

Exercise n. 5     Complete each line of the following table:

SIMPLE DISCOUNT

Future Value Rate Time Discount
450 6% 2 years  
  4% 2 months 6.00
1,200 8% 6 months  
9,400  

155 days (1)

127.74

6,000 6.8%

314 days (2)

 
16.000 5.6%

(2)

806.40

(1) calendar year (anno civile) 365 days per year (2) commercial year (anno commerciale) 360 days per year

Exercise n. 6

Fill in each blank of the following table:
1.  
future value    4,254
discount rate    5.50%
years   

4

simple discount    ________
2.  
future value    ________
discount rate    4.95%
months   

simple discount    859.22
3.  
future value    6,457.20
discount rate   

13%

months   

11

simple discount    ________
4. 
future value    8,500
discount rate    3.80%
months   

________

simple discount    161.50
5.  
future value    2,400.00
discount rate   

4%

days (360)   

60

present value    ________
6.  
future value 7,500.00
discount rate   

9.00 %

days (365)   

________

simple discount    277.40