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Mobilee Oil Company Accepted a $10,000, 120-Day Note Dated March

Question 67

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Mobilee Oil Company accepted a $10,000, 120-day note dated March 3 at 8½% to settle a past-due account receivable. Mobilee Oil discounted the note to raise cash on May 10, at a discounted rate of 9%. What proceeds did Mobilee Oil receive? Use ordinary interest.

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10,000 × .085 × 120/360 = 283....

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