Evergreen Animal Care Center issued a $5000 60-day note to a supplier, who discounted the note 12%. What are the proceeds from this note?

Name: Evergreen Animal Care Center issued a $5000 60-day note to a supplier, who discounted the note 12%. What are the proceeds from this note?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The proceeds from the note are $4,900.00. This is determined by adding the face amount of the note ($5000) plus interest ($5000 x 12% x 60/360) = 100 subtracted from the original amount of $5000 equals $4,900 in proceeds.

Evergreen Animal Care Center Issued a $5000 60-Day Note to a Supplier