Question 83 1.45 pts Carter Corporation issued a $20,000, 60-day, discounted note to Frist National Bank....

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Answer 1

Answer #1

Discount rate = 6%

Period = 60 days

Let assume 1 year = 360 days

Discount rate for 60 days = 6% * 60 days / 360 days = 1%

Cash proceeds = Value of Note - Discount

Cash proceeds = $20,000 - ($20,000 * 1%)

Cash proceeds = $19,800

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Answer 2

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