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

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

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:

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

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