Given that Juan Solez, a prominent painter, takes out a simple discount note for one year from River National Bank for $5,000.
Annual rate of interest on that amount is 8%.
Now we have to find about what is the amount of the discount and the proceeds.
Amount of discount will be just 8% of 5000
0.08 ( 5000 )= $400
Proceeds will be difference of original amount and discount so that will be 5000-400= $4600
