The Face Value on a Loan Is $18,500, the Interest

question 36

Essay

The face value on a loan is $18,500, the interest is 9.25%, and the time is 18 months. The bank discounted the note at 15% three months before the maturity of the loan. What is the bank discount?

---

Definitions:

Peritoneal Membrane

A thin layer of tissue lining the abdominal cavity and covering abdominal organs, involved in peritoneal dialysis.

Bile

A digestive fluid secreted by the liver and stored in the gallbladder, used in the digestion of lipids.

Liver

A large, vital organ in vertebrates that performs a wide variety of functions, including detoxification, protein synthesis, and production of biochemicals necessary for digestion.

Sigmoid Colon

The part of the large intestine closest to the rectum and anus, curved like an "S", involved in the digestive process.