Sunnydale Organics, Inc.harvests crops in roughly 90-day cycles based on a 360-day year.The firm receives payment from its harvests sometime after shipment.Due in part to the firm's rapid growth, it has been borrowing to finance its harvests using 90-day bank notes on which the firm pays 12 percent discount interest.If the firm requires $60,000 in proceeds from each note, what must be the face value of each note?

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The face value of the note is the amount of money that the bank lends to the firm. The proceeds of the note are the amount of money that the firm receives from the bank. The discount interest is the amount of interest that the firm pays to the bank. The face value of the note is calculated as follows:Face value = Proceeds / (1 - Discount rate)Face value = $60,000 / (1 - 0.12)Face value = $61,856