Lesson-3 Ee
Lesson-3 Ee
ECONOMICS
E N G R . J AY V E E L . D E R O B L E S
DISCOUNT AND INFLATION
LESSON 3
FR
DISCOUNT
Discount(D) on negotiable paper is the difference
between the present worth (the amount received
for the paper in cash) and the worth of the paper
in the future (the face value of the paper or
principal). Discount is interest paid in advance.