pomts each (i points) The borrower issues a note payable to a creditor. Notes payable may be issued to creditors to satisfy previously created accounts payable. fls An interest-beating note is a loan in which the lender deducts interest from the amount loaned before he money is advanced to the borrower 4 The amount borrowed is equal to the face amount of the note on an interest-bearing note payable. fol The proceeds of a discounted note are equal to the face value of the note 6alkThe amounts withheld from each employee for Medicare abd social security vary by state Part IT Multiple choice (3 points each) 12 points When a borrower receives the face amount of a discounted note less the discount, the amount is known as the note proceeds b. note discount c. note deferred interest d. note principal 2. discounted note payable of s100,000 is Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day, $6,000 b. $1,500 c. $500 d. $3,000 Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, the total payment will be (a 351,125 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, discounted note to National Bank. The a. $53,000 b. $50,500 c. $50,000 d. $49,500