Chris Shopper received a $1,000 discount loan to purchase a washer and dryer. The loan was offered at 12% for 120 days. What are the proceeds?

To evaluate the proceeds  we use the formula given by:
A=P(1+r)^t
where:
A=future value
P=principle
r=rate
t=time
from the question:
P=$1000, r=0.12, t=120/30=4 months=1/3 years
hence plugging the value in the formula and solving we obtain:
A=1000(1+0.12)^1/3
A=1038.5
Therefore the proceeds will be:
1038.5-1000
=$38.5