Find the Discount Date and Net Payment Date

question 37

Multiple Choice

Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
-Invoice date: Aug 20
Terms: EOM

• A)Discount date: Sept 27; net payment date: Oct 17
• B)Discount date: Sept 27; net payment date: Oct 27
• C)Discount date: Sept 20; net payment date: Oct 10
• D)Discount date: Sept 19; net payment date: Oct 9

---

Definitions:

Monthly Salary

Regular payments made to an employee, usually at the end of each month, as compensation for work performed.

Strip Bond

A financial security that represents a portion of the interest or principal of a bond, which has been separated to be sold individually.

Compounded Semiannually

This refers to the process of calculating interest on both the initial principal and the accrued interest from previous periods, done twice a year.

Maturity Date

The specified date on a financial instrument at which the principal (and usually the final interest payment) is due to be paid.