Calculate Proceeds-I have my answer posted

chaser

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Mar 6, 2012
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I have my answer at the bottum, can anyone glance at it and see where i might be wrong?

Question: On May 12, Bob Campbell accepted a $5,000 note in granting a time extension of a bill of goods bought by Rick Wean. Terms of the note were 8% for 120 days. On July 8, Bob needed to raise cash and discounted the note at Rick’s bank at a discount rate of 9%. Calculate Bob’s proceeds.

My answer: Money accepted by Bob Campbell for tome extension granting = $5000
After 120 days Money would be = $5400
Discount Rate = 9%
Total proceedings that Bob acquires = $4914 which is the difference of payment acquire and discounting money i.e. 5400-486=$4914
 
Thank you for your response butterfly, but is there any one out there have a second opinion?
 
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