Mobilee Oil Company accepted a $10,000, 120-day note,

Question

dated March 3, at 8.5% to settle a past due accounts
receivable. Mobilee Oil discounted the note to raise cash
on May 10 at a discounted rate of 9%. What proceeds did
Mobilee Oil receive?

Answer 1

Amt. = 10000 - 0.09*10000 = $9,100.