Question: Proceeds from notes payable On January 2 6 , Nyree Co . borrowed cash from Conrad Bank by issuing a 9 0 - day note

Proceeds from notes payable
On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $36,000. Assume
360 days in a year.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%.
$
x
b. Determine the proceeds of the note, assuming the note is discounted at 9%.
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The proceeds equal the cash initially received. Proceeds represents how much in value the borrower is walking away
with in cash or merchandise.
Proceeds from notes payable On January 26, Nyree Co. borrowed cash

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