Simple Discount and Promissory Notes

What is another term for interest in advance?

• simple interest

• simple discount

• trade discount

• compound interest

In the given formula, what does F stand for? Check all that apply.

 $D=Fdt$  

• face value

• maturity value

• final discount

in the given promissory note, what do you call 120 days?

• term of discount

• maturity date

• date of note

• term of note

In the given promissory note, who is the debtor?

• Gina Bravo

• Jaime dela Cruz

The amount received by the borrower after the interest in advance is deducted from the amount of loan?

• proceeds

• discount

• profit

• interest

A bank loan for PhP10,000 is discounted at 12% for 270 days. Find the bank discount?

• PhP900.00

• PhP9,100

• PhP887.67

A bank loan of PhP20,000 is discounted at 11 1/2% on July 25, 2020. If the loan is due in 100 days, what is the maturity date?

• November 2

• November 3

• November 4

• November 5

What do you call the time between the discount date and the maturity date?

• term of note

• term of discount

A discount of PhP300 is charged for a 72-day loan. If the discount rate is 16%, how much must be repaid in maturity?

• PhP9,000

• Php9,517.77

• PhP9,375

In the promissory note, what is Php9,500? Check all that apply.

• maturity value

• proceeds

• face value

• bank discount