CHAPTER 2 : BANK DISCOUNT & PROMISSORY NOTE

1. Syamsina needs RM 3,500 now. Find the amount that she should borrow for 200 days
from a bank that charges 8.5% bank discount rate. (RM3,673.47)

2. Thomas received a 120-days promissory note with a simple interest of 4% per annum.
The maturity value of the note is RM 1,560. Find the face value of the note.
(RM1,539.47)

3. Bellina borrowed RM 7,500 from Bank Z for 2 years to pay off some bills and catch up
on car payments. If the proceeds received were RM 6,375, find the discount rate that
was charged. (7.5%)

4. Zafri decides to borrow RM 25,000 from a bank that charges 4.7% discount rate for 6
years to set up his business. Calculate the proceeds he receives from the bank.
(RM17,950)

5. A 90-days promissory notes dated 15 March 2017 with a maturity value of RM 1,545
was charged a simple interest rate of 12% per annum. Find the face value. (RM1,500)

6. Mellisa received a 160-days promissory note and the note was discounted at a rate of
6%. The proceeds received were RM 25,000. Compute the maturity values of the note
by using Banker’s Rule. (RM25,684.93)

7. On 20 March 2017, Fuad received a 120 days promissory note with a face value of
RM 6,000 at an interest rate of 12%. He then sold the note to a bank at a discount rate
of 10% and received a proceed of RM 6,188. Compute the maturity value and the
discount term. (RM6,240, 30 days)

8. Said received a 60-days promissory note with a simple interest rate of 8% and a
maturity value of RM 2,533.33. The maturity date of the note was 19th June 2014.
Find:
i) the date of the note. (20 April 2014)
ii) the face value of the note using the Banker’s Rule. (RM2,500)

9. Rubiah borrowed RM15,000 for 2 years 5 months at a discount rate of 7.5% per
annum. Find the proceeds received. (RM12,281.25)

10. Amin received a promissory note at 6.85% simple interest rate on 3 June 2018. The
note will mature on 11 September 2018. After holding the note for 55 days, he
discounted the note at discount rate of 7% and received proceeds of RM 7,500. Find
the maturity value of the note. (RM7,566.20)

11. Haris received a 110-days promissory note on 16 June 2018 with a simple interest of
5% per annum. He discounted the note after 58 days at a discount rate of 3% and the
proceeds received was RM 10,000. Find:
i) the maturity date of the note. (4 October 2018)
ii) the maturity value of the note. (RM10,043.52)
iii) the face value of the note. (RM9,892.39)