Toby Signed a Simple Discount Promissory Note for $20,000

question 143

Multiple Choice

Toby signed a simple discount promissory note for $20,000. The discount rate is 8.5%, and the term of the note is 90 days. What are Todd's proceeds on the loan?

• A) $19,200
• B) $16,000
• C) $19,600
• D) $19,575

---

Definitions:

Flynn Effect

The observed substantial and long-sustained increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.

Identical Twins

Twins that result from one fertilized egg splitting and forming two embryos, sharing 100% of their genetic material.

Fraternal Twins

Siblings born at the same time but developed from separate eggs fertilized by different sperm, sharing 50% of their DNA.

Single Birth Siblings

Siblings who are not twins or multiples, born from separate pregnancies.