Bank discount I Choose The principal Number of days bank will wait for its money

Question

Bank discount I Choose The principal Number of days bank will wait for its money in the discount process A written promise Maturity value minus bank discount Due date Ability to borrow quicky True rate of interest Maturity value greater than original note Rate bank charges in the discounting process Amount bank charges in the discounting process Bank deducts interest in advance Signs the note Cash paid on due date Bank discount rate Discount period Effective rate Face value Choose Interest-bearing note Line of credit I Choose ] Maker I Choose 1 Maturity date I Choose 1 Maturity date [ Choose ] Maturity value IChoose The principal Number of days bank will wait for its money in the discount process A written promise Maturity value minus bank discount Due date Ability to borrow quickly True rate of interest Maturity value greater than original note Rate bank charges in the discounting process Amount bank charges in the discounting process Bank deducts interest in advance Signs the note Cash paid on due date Proceeds Promissory note Simple discount note

Explanation / Answer

1. Bank discount =amount bank charges in the discounting process

2. bank discount rate=rate bank charges in the discounting process

3. discount period =no of days bank will wait for its money in the discounting process

4. effective rate=true rate of interest

5. face value=the principal

6. Interest bearing note=maturity value is greater than original note

7. line of credit=ability to borrow quickly

8. maker=signs the note

9. maturity date=due date

10. maturity value=cash paid on due date

11. proceeds =cash paid on due date

12.promissory note=a written promise

13.simple discount note=maturity value minus bank discount

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