on may 12, Scott accepted an $8000, 12%, 90 day note for a time extension of a bill for goods bought by ron. On june 12, scott discounted the note at able bank at 10% What proceeds does scott receive

To calculate the proceeds that Scott will receive when he discounts the note at Able Bank, we need to understand the process of discounting a promissory note.

First, let's break down the given information:

Principal amount of the note (P) = $8000
Interest rate on the note (r) = 12% per annum
Time period (t) = 90 days

Now, let's calculate the interest accrued on the note over the 90-day period:

Interest accrued (I) = P * r * t
= $8000 * 0.12 * (90/365) (converting 90 days to a fraction of a year)
≈ $234.25

Next, we need to calculate the maturity value of the note, which is the sum of the principal and the interest accrued:

Maturity value (M) = P + I
= $8000 + $234.25
= $8234.25

The maturity value represents the amount that will be paid to Scott when the note matures.

Now, Scott discounts the note at Able Bank at an interest rate of 10%. The bank calculates the discount by deducting the interest from the maturity value:

Discount (D) = M * r * (t/365) (converting t in days to a fraction of a year)
= $8234.25 * 0.10 * (90/365)
≈ $200.54

Finally, the proceeds received by Scott will be the maturity value minus the discount:

Proceeds = M - D
= $8234.25 - $200.54
≈ $8033.71

Therefore, Scott will receive approximately $8033.71 as the proceeds when he discounts the note at Able Bank.