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A simple discount note results in
A. interest that's deducted in advance.
B. interest that's deducted when note is paid back.
C. lower interest costs than a simple interest note.
D. the same interest costs as a simple interest note.

Respuesta :

MissPhiladelphia
A simple discount note results in interest that are deducted in advance, this can just be simply called a discount.  It is usually being confused with markdown. Discount is a deduction in the price of a product base on the purchase of the customer while markdown is a reduction of price based on inability to be sold. 
annyksl

Answer:

A. interest that's deducted in advance.

Explanation:

In its broadest sense, the term discount refers to the reduction or reduction of a certain amount, however, the word has more rigorous references according to the context used.

In the case of the economy, the discount is an advance of resources made by the bank on the values of the respective securities (duplicates or promissory notes). In this type of operation, the customer receives in advance the amount corresponding to its installment sales, however, the customer does not receive the total amount, as fees are discounted on that amount. Thus, a simple discount note results in interest deducted in advance.

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