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Ray Furniture wants to buy a dining room for $8,125 with a 20 percent trade discount. Ray needs the cash to pay the bill and
Ray Furniture wants to buy a dining room for $8,125 with a 20 percent trade discount. Ray needs the cash to pay the bill and is considering discounting a 90 day note dated May 12 with a maturity value of $6,500 at Hunt Bank at a discount rate of 13 percent on June 5. The bank discount if Ray discounts the note is
Select one:
a. $211.25
b. $1,400
c. $154.92
d. $212.15
e. none of the above
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