Question: Proceeds from Notes Payable On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $73,200.

Proceeds from Notes Payable

On January 26, Vibrant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $73,200. Assume a 360-day year.

A. Determine the proceeds of the note, assuming the note carries an interest rate of 9%.

__________________

B. Determine the proceeds of the note, assuming the note is discounted at 9%.

I thought the answer to A was 1647 (73200*.09*90/360 = 1647) and that is incorrect. Any help on both A and B would be greatly appreciated!

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