Final answer:
The proceeds on a simple interest note are the total amount received from a loan, which includes the initial principal plus the interest earned calculated by the formula: Interest = Principal × Rate × Time.
Step-by-step explanation:
The proceeds on a simple interest note refer to the total amount of money that is received from a loan after the simple interest has been applied to the principal amount over a specific period of time. To calculate simple interest, you can use the formula: Interest = Principal × Rate × Time.
For example, if you deposit $100 at a simple interest rate of 5% for three years, the interest earned would be calculated as:
$100 × 0.05 × 3 = $15
Thus, the interest is $15 for this example. The proceeds, or the total amount after the interest has been applied, would be the sum of the principal amount plus the interest, thus $100 + $15 = $115.