On August 1,2014,Jones discounted the note under the arrangement with National Bank.How much were the proceeds of the discounted note?

Name: On August 1,2014,Jones discounted the note under the arrangement with National Bank.How much were the proceeds of the discounted note?
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Maturity value = Principal + Interest = $40,000 + ($40,000 × 8% × 6/12)= $41,600.Proceeds = Maturity value - discount = $41,600 - ($41,600 × .10 × 5/12 = $1,733)= $39,867

On August 1,2014,Jones Discounted the Note Under the Arrangement with National