Part I True/False 4 points each (24 points) The borrower issues a note payable to a creditor Notes payable may be issued to creditors to satisfy previously createda An interest-beating note is a loan in which the lender deducts interest 1 The amount borrowed is equal to the face amount of the note on an intere 5 The proceeds of a discounted note are equal to the face value of 2. payable. 3. amount loaned before he money is advanced to the borrower. 4. note payable. 6. by state The amounts withheld from each employee for Medicare abd social sec Part il Maitipie choice 4points each) to points When a borrower receives the face amount of a discounted note less the discount, is known as the a. note proceeds b. note discount c. note deferred interest d. note principal 2. discounted note payable of $100,000 is Assuming a 360-day year, the interest charged by the bank, at the rate of 6% a. $6,000 b. $1,500 c. $500 d. $3,000 Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing matures, the total payment will be a. $51,125 b. $54,500 c. $1,125 d. $4,500 4 discount rate is 6%. At maturity, assuming a 360-day year, the borrower will pay Anderson Co. issued a $50,000, 60-day, dicounted note to National Ban a. $53,000 b. $50,500 c. $50,000