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What are the differences between a simple interest note and a simple discount note

asked
User Orlenko
by
8.0k points

1 Answer

2 votes

Answer:

Simple discount notes involve:

proceeds

discount rate

time

bank discount

face value

The main difference is that simple interest is calculated based on principal, whereas simple discount is calculated based on maturity value.

I hope this helps! :)

answered
User Frenchone
by
7.5k points

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