Question

A 8920 note is signed for 160 days at a rate of 6.5% find the proceeds

Answer 1

If it is a simple interest note, the proceeds are $8920.

If the note is dicounted, the proceeds will be 8920 less the interest due.
.. P(1 -rt)
.. = 8920*(1 -0.065*160/360) = 8662.31
The proceeds on a discounted note are $8662.31.

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If "exact" interest is used, then t=160/365 and the proceeds are 8665.84.