Questions:

Amount bank charges in the discounting process

Rate bank charges in the discounting process

Number of days bank will wait for its money in the discount process

True rate of interest

The principal

Maturity value greater than original note

Ability to borrow quickly

Signs the note

Due date

Cash paid on due date

Maturity value minus bank discount

A written promise

Bank deducts interest in advance

Answers:

Bank discount

Bank discount rate

Discount period

Effective rate

Face value

Interest$-$bearing note

Line of credit

Maker

Maturity date

Maturity value

Proceeds

Promissory note

Simple discount note