   Chapter 17, Problem 1MC

Chapter
Section
Textbook Problem

Principal plus interest equals ______ of a note. (a) discount (b) net proceeds (c) interest rate (d) maturity value

To determine

Identify the option that equals principle plus interest equals of a note.

Explanation

Promissory note:

Promissory note is the written to make payment for a particular sum at a definite future date.

Justification for the incorrect options of (a), (b) and (c):

Discount, net proceeds and interest rate does not equal to the principal plus interest of the note. Therefore, these are incorrect options.

Justification for correct option (d):

The principle value of the note including the interest equals the “maturity value of the note”...

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