Proceeds from Notes Payable

On May 15, Maynard Co. borrowed cash from Texas Bank by issuing a 90-day note with a face amount of $57,600. Assume a 360-day year.

Required:

a. Determine the proceeds of the note, assuming the note carries an interest rate of 5%. $

b. Determine the proceeds of the note, assuming the note is discounted at 5%. $