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.

Answer rating: 100% (QA)

1 The face value of the bills Particulars Bill 1 Bill 2 Bill 3 Credit sales amount 50000 50... View the full answer