TUTORIAL BANK DISC AND PROMISSORY NOTES

1. Tony received a 200-day promissory note with a simple interest of 5% per annum.
The maturity value of the note is RM2500. Find the face value of the note.

2. Sherry need RM15,000 now. Find the amount that she should borrow for 150 days
from a bank that charges 6% bank discount rate.

3. A promissory note with a maturity value of RM4,896 was discounted 44 days before
maturity date. If the proceeds were RM4854.11, find the discount rate that was
charged.

4. A promissory note with a term of 60 days and a simple interest of 6% per annum has
a maturity value of RM5250. The note was discounted 30 days before maturity at a
discount rate of 5.5%.

i. Calculate the proceeds received.

ii. What was the face value of the note?