Custom Computers holds a 120 day note of $8,000 that has an interest rate of 6 annually After 60 days, the note is sold to a bank at a discount rate of 5 annually Find the proceeds on the third party discount note ...

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Custom Computers holds a 120-day note of $8,000 that has an interest rate of 6% annually. After

Question:

Custom Computers holds a 120-day note of $8,000 that has an interest rate of 6% annually. After 60 days, the note is sold to a bank at a of 5% annually. Find the proceeds on the third-party discount note.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...