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Exercise 1

Suzy received a 120-day note with a simple interest rate of 11.5% per year. The face value of the note
was RM15,000 and the maturity date was on 23 March 2014. Find
i) the date of the note
ii) the maturity value
Exercise 2

Thomas received a 120-day promissory note with a simple interest of 4% per annum. The maturity
value of the note is RM1,560. Find the face value of the note.
D=S-Proceeds S=Proceeds+D
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Exercise 3

Syamsina needs RM3,500 now. Find the amount that she should borrow for 200 days from a bank that
charges 8.5% bank discount rate.
Exercise 4

David needs RM30,000 now to start a business. How much should he borrow from a bank for 3 years at
7% bank discount rate?
Exercise 5

Mr. Ramesh wants to take a loan of RM4,073.33 from a bank which offer a discount rate of 7.1%. If the
date of repayment is 9 June 2017 and the amount of discount is RM48.34, find the date of the loan.
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Exercise 6

Suzy borrowed a sum of money for 110 days from a bank that charged a discount rate of 8.5%. Find the
equivalent simple interest rate that was charged by the bank.
I=Proceeds-P
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(the term of the note)

(discount period)
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Exercise 7

Ibrahim received a 130-day promissory note on 20 January 2010 with simple interest at 6%. On 26
March 2010, he discounted the note at a discount rate of 4% and received proceeds of RM15,000. Find
i) the maturity date of the note.

ii) the maturity value of the note.

Ibrahim received a 130-day promissory note on 20 January 2010 with simple interest at 6%. On 26
March 2010, he discounted the note at a discount rate of 4% and received proceeds of RM15,000. Find
iii) the face value of the note.

iv) the amount of interest.

Exercise 8

Best-Shine Manufacturing received a RM40000 promissory note at 12% simple interest for 95 days from
one of its customers. After 70 days, Best-Shine discounted the note at the PP Bank at a discount rate of
15%. The note was made on 20 May 2010. Find
i) the maturity date of the note.

ii) the maturity value.

Best-Shine Manufacturing received a RM40000 promissory note at 12% simple interest for 95 days from
one of its customers. After 70 days, Best-Shine discounted the note at the PP Bank at a discount rate of
15%. The note was made on 20 May 2010. Find
iii) the discount term.

iv) the proceeds received.

v) the interest earned by Best-Shine Manufacturing.