A 90-day non-interest-bearing promissory note issued on September 30, 2015 for $5,000 was discounted at 5.75% simple interest on November 5, 2015. What were the proceeds of the note?

Non-Interest-Bearing

Describes a financial instrument that does not generate interest income for the holder.

Promissory Note

A pecuniary promise recorded in a document, where one side agrees to pay a definite financial sum to the other, available either on demand or on a date in the future that has been agreed upon.

Simple Interest

Interest determination based strictly on the principal sum, thereby excluding any interest that may have accrued in past periods from the calculation.