Tutorial 4(b): Promissory Notes & Bank Discount

1. Sahirah received a promissory note valued at RM8,550 for 115 days with an interest rate of 5.5% per
annum. The note matured on 28th May 2014. Find:
i. the date of the note
ii. the maturity value of the note.

2. Sentosa Mart Sdn Bhd received the above notes.

RM8,500 14 April 2014
100 days after date we promise to pay to the order of Sentosa Mart Sdn Bhd the sum of
Ringgit Malaysia eight thousand and five hundred only for value received with interest
at 3.5% per annum.
Beauty Life Company

i. Find the maturity date of the note.

ii. Calculate the maturity value of the note.

3. A promissory note dated 15th August 2020 reads “Two months from date, I promise to pay RM5,000 with
interest at 8% per annum”.
i. Find the maturity date of the note.
ii. Find the maturity value of the note.

4. The maturity value of a 60-day interest bearing promissory note is RM2,020. If the interest rate is 6%
per annum, what is the face value of the note?

5. The interest on a 90-day promissory note is RM200. If the interest rate is 8% per annum, find the face
value of the note.

6. Fatima borrows RM5,000 for six months from a lender who charges a discount rate of 9%. Find:
i. The discount
ii. The proceeds

7. A loan of RM7,000 was made on 15th October 2020 at XYZ Bank that charged a simple discount rate of
d%. The discount charged was RM205 and the loan matured on 11 November 2020.

8. Megah Holdings received a RM10,200, 7.5% 200-day promissory note dated June 15 from a retailer.
The note was discounted on October 22 at a national bank. The bank discount rate was 11%. Calculate:
i. The maturity value of the simple interest notes.
ii. The discount periods.
iii. The bank discounts.
iv. The proceeds.