Israel signed a simple discount promissory note for $15,000. The discount rate is 7.5%, and the term of the note is 120 days. What are Israel’s proceeds on the loan?

Answer 1

Ar = Ab - Ad.
Ar = 15000 - 15000*(0.075/360)*120 = $14,625 = Amt. received(proceeds).

Ar = Amount received.
Ab = Amount borrowed.
Ad = Amount discounted.