Proceeds from Notes Payable

On January $26,$ Elegant Co$.$ borrowed cash from Conrad Bank by issuing a $60-$day note with a face amount of $$42,000.$ Assume a $360-$day year.

a$.$ Determine the proceeds of the note, assuming the note carries an interest rate of $10\%.$ $ $x$

b$.$ Determine the proceeds of the note, assuming the note is discounted at $10\%.$ $$x$

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The proceeds equal the cash initially received. Proceeds represents how much in value the borrower is walking away with in cash or merchandise.