If one discounts a non-interest-bearing note, all the following will be used except:
A)Principal + interest
B)Discount rate
C)Discount period
D)Face value of the note
E)None of these

Question

Quizplus · Accepted Answer

Non-interest-bearing notes do not have interest, so there is no need to calculate or consider any interest in the discounting process. The discount will only be based on the face value of the note, the discount rate, and the discount period.

If One Discounts a Non-Interest-Bearing Note, All the Following Will