business math
posted by Anonymous .
toby signed a simple discount promissory note for $20,000. the discount rate is 8.5%, and the term of the note is 90 days. what are toby's proceeds on the loan?

Ar = Ab  Ad
Ar = 20,000  20,000*(0.085/360)*90 =
20,000  425 = $19,575 = Amount received
(proceeds).
Ab = Amt. borrowed.
Ad = Amt. discounted.
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