Answer:
a. Proceeds from the note are $43,200.
b. Proceeds from the note = $42,552
Explanation:
b) Determine the proceeds of the note, assuming the note is discounted at 6%.
a. The notes are issued at the face value and thus the proceeds from the notes are $43,200.
b. Proceeds from the note = Face value of note - (Face value * Interest rate * Period due)
Proceeds from the note = $43,200 - ($43,200 * 6% * 90/360)
Proceeds from the note = $43,200 - $648
Proceeds from the note = $42,552
