A long term promissory note for $20000 dated August 15, 2013 is due on February 15, 2018 with interest atj4=8%.

Part (a): On June 18, 2017 it is discounted by a lender at 9.5% compounded semi-annually. Find the proceeds (i.e. the price paid for the note). Be sure to include a time diagram in your solution.

Part (b): Determine an appropriate equivalent simple discount rate that could have been used to determine the proceeds.