: You pay back exactly $10,000 at the end of 90 days.
If you take a loan at a 6% bank discount for 90 days : Discount : Proceeds : bank discount
: Simple interest is paid at the end; bank discount is paid at the start. Practical Example : You pay back exactly $10,000 at the end of 90 days
: Simple interest calculates on the amount borrowed; bank discount calculates on the amount to be repaid. : You pay back exactly $10