A bank's customer requires assistance with bank bill credit. The following details are available: - Acceptance commission
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Question:
- Acceptance commission charged by the bank = 0.5% of nominal value payable in advance.
- Stamp duty = 10 cents for every $100.
- Discount rate = 10%.
- Nominal value of acceptance = $1 million.
-Tenure of bill = 60 days.
Calculate the discounted value of the bank bill. Show your workings and answer.
Related Book For
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone
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