You sign a simple discount promissory note for \( \$ 9,000 \) at a discount rate of \( 3 \% \), for 36 months. What are the proceeds (in \( \$ \) )? Need Help? Read it Watch it Master it SUBMIT ANSWER

To calculate the proceeds from a simple discount promissory note, you can use the formula: Proceeds = Face Value - (Face Value × Discount Rate × Time) In this case, the face value is \( \$ 9,000 \), the discount rate is \( 3\% \) (or \( 0.03 \)), and the time is \( 36 \) months (or \( 3 \) years). First, calculate the discount: Discount = \( 9,000 \times 0.03 \times 3 = \$ 810 \) Now, subtract the discount from the face value to find the proceeds: Proceeds = \( 9,000 - 810 = \$ 8,190 \) Therefore, the proceeds from the note are \( \$ 8,190 \). If you ever find yourself signing a promissory note, remember to account for the discount mechanism! It’s like receiving an upfront payment minus interest, allowing those funds to be put to immediate use while yielding a little investment return for the lender. Don’t forget, reading the fine print helps uncover any hidden fees or stipulations that could impact how much cash you take home. It's always wise to ask for clarification if terms seem confusing. Happy financing!