Anticipation

Definition

Anticipation is a discount in addition to the cash discount if a bill is paid prior to the expiration of the cash discount period, usually at the rate of 6 percent per annum.

At this rate, for 60 days prepayment (1/6 of an interest year), the anticipation ratio would be 1% of the face amount. [1]

 

References

  1. ^ American Marketing Association, AMA Dictionary.

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