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Lester Furniture wants to buy a dining room for $8,000 with a 30 percent trade discount. Lester needs the cash to pay the bill and

Lester Furniture wants to buy a dining room for $8,000 with a 30 percent trade discount. Lester needs the cash to pay the bill and is considering discounting a 120-day note dated May 14 with a maturity value of $7,000 at Hunt Bank at a discount rate of 8 percent on June 12. The bank discount if Lester discounts the note is $245.61.

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