On May 12, Scott Rinse accepted an 8000.00, 12%, 90-day note for a time extension of a bill for goods bought by Ron Prentice. On June 12, Scott discounted the note at Able Bank at 10% What proceeds does Scott receive?

simple interest 2430 times 0.06 times 1/12

To determine the proceeds Scott receives when he discounts the note at Able Bank, we'll need to calculate the discounted value of the note.

Step 1: Calculate the interest on the note for 90 days.
Interest = Principal * Rate * Time
Interest = $8000.00 * 0.12 * (90/360)
Interest = $240.00

Step 2: Calculate the maturity value of the note.
Maturity Value = Principal + Interest
Maturity Value = $8000.00 + $240.00
Maturity Value = $8240.00

Step 3: Determine the discounted value of the note using the discount rate.
Discounted Value = Maturity Value - (Maturity Value * Discount Rate)
Discounted Value = $8240.00 - ($8240.00 * 0.10)
Discounted Value = $8240.00 - $824.00
Discounted Value = $7416.00

Therefore, Scott receives $7416.00 as proceeds when he discounts the note at Able Bank.