Match the terms with the definitions.
-The interest amount paid divided by the proceeds received on a discounted note. This amount will differ from the stated rate on the face of the note.
A)accrued interest on notes payable
B)time
C)proceeds (note receivable)
D)principal of the note
E)notes payable register
F)credit advice
G)maturity value
H)discounting a note receivable
I)dishonored
J)effective rate
K)promissory note
L)maker

Question

Quizplus · Accepted Answer

The effective rate is the actual interest rate earned or paid on a note, which can differ from the stated rate due to the way interest is calculated or compounded.

Match the Terms with the Definitions