Ray Furniture Wants to Buy a Dining Room Set for $7,000

Ray Furniture wants to buy a dining room set for $7,000 with a 20% 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% on June 5. The bank discount if Ray discounts the note is:

A) $211.25
B) $1,400
C) $154.92
D) $212.15
E) None of these