The simple discount, mathematically, the reverse of the simple capitalization is a
financial transaction, where negotiable paper with values due on future date or face value, the debtor can ask for
paying in advance at a discount to its face value.
The discount is a form of financing or investment, typically of short-time. For those who sell the paper represents money in advance and for those who purchase, an investment.
The value discount, the difference between face value and purchase price represents the return to be earned by investor and the charges, for the seller.
The cost or gain on the transaction in term of rate is obtained by calculating the Effective rate.
The discounts for multiple titles and different maturities, is obtained by calculating the Average period.
Enter data; as requested, to calculate the purchase price. Use decimal point to separate decimal place. E.g. 25,152.47 enter 25152.47; The result is showed, automatically by clicking on "Calculate". For the calculation is assumed commercial year.
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