A company received in payment for merchandise sold an interest-bearing note with a face amount of

$1,000, an annual interest rate of 16 percent, and a term of six months. The company sold this note to a

local bank, at a discount rate of 15 percent, when the note had 60 days remaining to maturity. The cash

proceeds from the discounted note amounted to (assume 360 days per year):

A. $1,080

B. $1,053

C. $1,010

D. $975