On February 1, Electronic Warehouse Co. issued a 45-day note with a face amount of $80,000 to

Question:

On February 1, Electronic Warehouse Co. issued a 45-day note with a face amount of $80,000 to Yamura Products Co. for cash.
(a) Determine the proceeds of the note, assuming the note carries an interest rate of
10%.
(b) Determine the proceeds of the note, assuming the note is discounted at 10%.