Question 1

Bank discount on a simple discount note is based on the amount a borrower receives and not what he or she pays back.

Accepted Answer

A) True 
 B)False

Question 2

Shelley Corporation discounted a $7,000, 90-day note dated June 18 at the Sunshine Bank on July 18 at a discount rate of 12%. (Assume the $7,000 is the maturity value.)  The amount of bank discount is:

Accepted Answer

A)   $70
B)   $210
C)   $140
D)   $240
E)   None of theseF) A) and C)
G) None of the above

Question 3

The maturity value of a $16,000 non-interest-bearing, simple discount 6%, 60-day note is:

Accepted Answer

A)   $16,160
B)   $16,000
C)   $16,610
D)   $16,600
E)   None of theseF) B) and C)
G) A) and B)

Question 4

The bank discount of an $18,000 non-interest-bearing, simple discount 8%, 90-day note is:

Accepted Answer

A)   $18,360
B)   $17,640
C)   $630
D)   $360
E)   None of theseF) B) and C)
G) None of the above

Exam 17: Promissory Notes, Simple Discount Notes, and the Discount Process

Bank discount on a simple discount note is based on the amount a borrower receives and not what he or she pays back.

Correct Answer
verified

The bank discount of an $18,000 non-interest-bearing, simple discount 8%, 90-day note is:

Correct Answer
verified

Shelley Corporation discounted a $7,000, 90-day note dated June 18 at the Sunshine Bank on July 18 at a discount rate of 12%. (Assume the $7,000 is the maturity value.) The amount of bank discount is:

Correct Answer
verified

The maturity value of a $16,000 non-interest-bearing, simple discount 6%, 60-day note is:

Correct Answer
verified

Exam 17: Promissory Notes, Simple Discount Notes, and the Discount Process

Bank discount on a simple discount note is based on the amount a borrower receives and not what he or she pays back.

Correct AnswerverifiedShow Answer

The bank discount of an $18,000 non-interest-bearing, simple discount 8%, 90-day note is:

Correct AnswerverifiedShow Answer

Shelley Corporation discounted a $7,000, 90-day note dated June 18 at the Sunshine Bank on July 18 at a discount rate of 12%. (Assume the $7,000 is the maturity value.) The amount of bank discount is:

Correct AnswerverifiedShow Answer

The maturity value of a $16,000 non-interest-bearing, simple discount 6%, 60-day note is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified