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In discounting an interest-bearing note, the discount period represents:
Number of days from date of discount to date of maturity
 
Justin discounts a 115-day note for $26,000 at 8.5%.
The effective rate of interest to the nearest tenth percent is:
8.7%
 
Tiffany purchased a $10,000, 13-week Treasury bill that is paying 2.25%.
What is the effective rate on this T-bill?
2.26%
 
The maturity value of a $16,000 non-interest-bearing, simple discount 6%, 60-day note is:
$16,000
 
In calculating the bank discount when discounting an interest-bearing note,
which one of the following is not used in the calculation?
Principal proceeds
 
On June 30, Rose Company accepted a 90-day, $12,000 non-interest-bearing note from C Manufacturer.
The maturity value of the note for Rose is:
$11,500
$11,800
$11,900
$11,950
None of these
 
The bank discounts an $8,750 non-interest-bearing simple discount note at 6% for 60 days.
What is the discounted amount?
$87.50
 
A promissory note:
Has a fixed time
 
The bank discount of an $18,000 non-interest-bearing, simple discount 8%, 90-day note is:
$360
 
The maker of a promissory note:
Issues the note
 
The maturity value of a $20,000, 7%, 75-day interest-bearing note dated September 10, is:
$20,291.67
 
Jill Corporation accepted a $16,000 note on Aug. 12. Terms of the note were 13% for 100 days.
Jill discounted the note on September 28, at the Reno Bank at 14%. The proceeds to Jill would be:
$16,236.09
 
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:
$140

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J. Ryan discounts an 80-day note for $15,000 at 12%. The bank discount is (assume ordinary interest):
$400
 
The maturity value of a $28,000, 6%, 60-day interest-bearing note on August 6, is:
$28,280
 
Jill Jones borrowed $18,000 for 180 days from Sovereign Bank.
The bank discounts the note at 8%. The effective interest rate to the nearest hundredth percent is:
8.33%
 
A $15,000, 6%, 50-day note dated November 8, is discounted at 5% on November 28. The proceeds of the note would be:
$15,061.98
 
A $7,000, 4%, 120-day note dated March 20, is discounted on July 15. Assuming a 3% discount rate, the bank discount is:
$1.77
 
On April 12, Dr. Rowan accepted a $10,000, 60-day, 11% note from Bill Moss granting a time extension on a past-due account.
Dr. Rowan discounted the note at the bank at 12% on May 13. The bank discount is:
$98.44
 
A $15,000, 11%, 120-day note dated Sept. 3, is discounted on Nov. 11. Assuming a bank discount rate of 9%,
the proceeds would be:
$15,351.74
 
In calculating the bank discount when discounting an interest-bearing note,
Which one of the following is not used in the calculation?
Principal proceeds
 
J. Ryan discounts an 80-day note for $15,000 at 12%. The bank discount is
(assume ordinary interest).
$400
 
The maturity value of a $16,000 non-interest-bearing, simple discount 6%, 60-day note is:
$16,000
 
If one discounts a non-interest-bearing note, all the following will be used except:
Principal + interest
 
Maturity value of a non-interest-bearing note is:
Same as the face value
 
A simple discount note results in:
Interest deducted in advance
 
In calculating the bank discount when discounting an interest-bearing note,
which one of the following is not used in the calculation?
Principal proceeds
 
In discounting an interest-bearing note, the discount period represents:
Number of days from date of discount to date of maturity
 
A $15,000, 11%, 120-day note dated Sept. 3, is discounted on Nov. 11.
Assuming a bank discount rate of 9%, the proceeds would be:
$15,351.74
 
The maturity value of a $28,000, 6%, 60-day interest-bearing note on August 6, is:
$28,280
 
A $25,000, 15%, 80-day note dated November 5, is discounted at National Bank on January 5.
The discount period is:
19 days
 
The bank discounts an $8,750 non-interest-bearing simple discount note at 6% for 60 days.
What is the discounted amount?
$87.50

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