[wanmeizhuyi]

Becker FAR F4 regarding sell N/R to third party, there is an example on Page19：

company has $40000, 90-day note from a customer dated September 30, 20XX,due

December 30, 20XX, and bearing interest is 12%. On October 30, 20XX (30

days after issue), the company takes the note to its bank, which is willing

to discount it at 15% rate. The note was paid by customer at maturity on

December 30, 20XX (60 days later)

Compute the amount to be paid by the bank for the note. What amount should

the company report as net interest income from the note?

I understand the solution for the calculation of

maturity value = 40000+40000*12%*90/360 = 41200。

But I do not understand why the selling to the bank 15% rate should calculate base on maturity value （15% * 60/360 *

41200 = 1030）。What I thought is that interest should be calculated using principle (face value), but why using total maturity value (including interest) in this case?

Thanks!