On March 25, Helen Norton Received from a Customer a $3,200

question 71

Short Answer

On March 25, Helen Norton received from a customer a $3,200 promissory note at 12% ordinary interest for 60 days. On April 14, Helen discounted the note at the Glenside Bank at a discount rate of 15%.
A)What was the maturity date of the note?
B)What was the maturity value of the note?
C)Determine the discount period.
D)What proceeds did Helen receive on April 14?

• A)What was the maturity date of the note?
• B)What was the maturity value of the note?
• C)Determine the discount period.
• D)What proceeds did Helen receive on April 14?

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Definitions:

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a designated person.

Payable

An amount of money that is owed and should be paid.

Definite Period

A specific, fixed duration of time identified in a contract or agreement during which certain actions must be performed or conditions met.

Presented

Shown, given, or made available for viewing or consideration.