What Is Discount Interest?
It refers to the interest paid by the holder of the bill of exchange to the bank to pay the denomination;
Discount interest
Right!
It refers to the interest paid by the holder of the bill of exchange to the bank to pay the denomination;
- Name
- Discount interest
- Name
- Discount Charges
- Formula
- Actual payment
The actual discounted cash amount is
Formulated as:
Discount interest = discounted cash amount × number of discount days × daily discount rate
Daily discount rate = monthly discount rate ÷ 30 or annual discount rate ÷ 360
Actual payment amount = face value-discount interest
Where the acceptor is in a different place, the period of discounting, re-discounting and rediscounting, as well as the calculation of discounted interest, shall add an additional 3 days to the transfer.
