A 60-day note dated April 1 was turned over to the bank for discounting on April 21. The number of days used in computing the dollar amount of the discount is
A)20.
B)40.
C)60.
D)30.

Question

Quizplus · Accepted Answer

The bank will use the number of days from the date the note was discounted (April 21) to the maturity date (June 1) to compute the discount. This is 40 days (June 1 - April 21 = 40).

A 60-Day Note Dated April 1 Was Turned Over to the Bank