The face amount of a note that is promised to be paid at maturity is called the
A) rate of interest.
B) principal of the note.
C) time of the note.
D) discount of the note.

Question

Quizplus · Accepted Answer

The principal of a note is the face amount that is promised to be paid at maturity. The rate of interest is the percentage charged on the principal, and the time of the note is the length of time until maturity. The discount of the note refers to the difference between the face amount and the amount paid to acquire the note.

The Face Amount of a Note That Is Promised to Be