T for true or F for false. 2 marks for each correct answer. 1. A promissory note is a written promise by one party to pay a certain sum of money, with or without interest, at a specific date or on demand, to another party. 2. The payee of a promissory note is the party making the promise to pay. 3. Treasury bills are issued by Federal and Provincial Governments, and are interest bearing promissory notes. 4. Lenders has the right to demand full repayment at any time in a demand loan. 5. Compound interest refers to the interest on interest. 6. The number of days between July 31 2014 and December 3 2014 is 124 days. 7. The present value is the discounted value or proceeds of known future cash flows. 8. Rule of 72 is to quickly estimate the time needed to double your investment. 9. Effective interest rate is equal to nominal interest rate if money is compounded annually. 10. For a given nominal interest rate, effective interest rate decreases as number of compounding periods per year increases