Abe Corp. discounted a 120-day note with a maturity value of $8,000 dated June 8 at the Village Bank on Sept. 2, at a discount rate of 9%. Use ordinary interest. How much did Abe receive?

Name: Abe Corp. discounted a 120-day note with a maturity value of $8,000 dated June 8 at the Village Bank on Sept. 2, at a discount rate of 9%. Use ordinary interest. How much did Abe receive?
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Days = 120 - (days between Jun 8 and Sep 2)= 120 - 86 = 34; 8,000 × .09 × 34/360 = 68; 8,000 - 68 = $7932.

Abe Corp Discounted a 120-Day Note with a Maturity Value of of $8,000