The amount of interest that is deducted from the amount you wish to borrow in order to get proceeds is
A)accrued interest.
B)bank discount.
C)stated interest.
D)simple interest.

Question

Quizplus · Accepted Answer

Bank discount is the amount of interest that is deducted from the face value of a loan when it is issued. It is calculated based on the face value of the loan, the interest rate, and the length of time until maturity. This means that the bank will issue the loan for less than the face value, and the borrower will receive the net proceeds after the bank discount has been deducted.

The Amount of Interest That Is Deducted from the Amount