Question: Proceeds from Notes Payable On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 90-day note with a face amount of $57,600.
Proceeds from Notes Payable
On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 90-day note with a face amount of $57,600. Assume a 360-day year.
Required:
a. Determine the proceeds of the note, assuming the note carries an interest rate of 5%. $
b. Determine the proceeds of the note, assuming the note is discounted at 5%. $
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