Higgins , 1999 . The interest rate used in discounting is called the discount rate . The amount of money to be received in a future date is usually a combination of the original investment and the interest on that investment . Discounts are rewards or considerations given on the purchase of negotiable instruments such as bills of exchange and promissory notes in advance of their maturity date . When these negotiable instruments are said to be discounted , discounts are regarded as advance collection of...











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