The Face Value of a Note Is $5,290 with an Interest

question 46

Essay

The face value of a note is $5,290 with an interest rate of 8%. The time is based on 60 days in a 360-day year, and the loan was taken out on March 17. The note has been discounted 16% on April 3. What are the proceeds?

---

Definitions:

Physical Delivery

The actual transfer of an asset from seller to buyer or fulfilling a contractual agreement by transferring the physical commodity or asset.

Personal Property

Movable properties such as furniture, automobiles, and electronics, as opposed to real estate or immovable property.

Transfer of Title

The legal process of transferring ownership of property or assets from one person or entity to another.

Bailment

A legal relationship in which physical possession of personal property is transferred from one person to another under the agreement that the property will be returned.