Find the discount (ordinary interest) and proceeds on a promissory note for $2,000 made by Barbara Jones on February 10, 2007, and payable to First State Bank on August 10, 2007, with a discount rate of 9%.

Answer 1

P = Po - Po*r*t
P = 2000 - 2000*(0.09/360)*181
P = 2000 - 90.50 = $1909.50 = Proceeds.

Discount = $90.50