bank discount

Definition of "bank discount"
  1. Pre-computed interest subtracted in advance from the principal amount (face value) of a promissory note
How to use "bank discount" in a sentence
  1. The lender calculated the bank discount before giving the borrower the loan.
  2. The bank discount was immediately subtracted from the face value of the note.
  3. Understanding the calculation of a bank discount helps manage the cost of a loan effectively.

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