Question: Proceeds from Notes Payable On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount of $51,600.

Proceeds from Notes Payable

On January 26, Nova Co. borrowed cash from Conrad Bank by issuing a 120-day note with a face amount of $51,600. Assume a 360-day year.

a. Determine the proceeds of the note, assuming the note carries an interest rate of 8%. $

b. Determine the proceeds of the note, assuming the note is discounted at 8%.

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