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 8th, Bob needed to raise cash and discounted the note at Rick’s bank at a discount rate of 9%. Calculate Bob’s proceeds

To calculate Bob's proceeds, we need to find the discounted value of the note. The formula to find the discounted value of a note is:

Discounted Value = Face Value / (1 + (Discount Rate * Time))

In this case, the Face Value of the note is $5,000, the Discount Rate is 9%, and the Time is the number of days between the discount date (July 8) and the date the note was accepted (May 12).

First, let's find the number of days between May 12 and July 8:
- May has 31 days.
- June has 30 days.
- July 8 is the 8th day of July.
Total number of days = 31 + 30 + 8 = 69 days.

Next, let's find the time in years by dividing the number of days by 365:
Time = 69 / 365 = 0.189 years (rounded to three decimal places).

Now, we can calculate the discounted value using the formula:
Discounted Value = $5,000 / (1 + (0.09 * 0.189))
Discounted Value = $5,000 / (1 + 0.01701)
Discounted Value = $5,000 / 1.01701
Discounted Value ≈ $4,916.86 (rounded to two decimal places).

Therefore, Bob's proceeds from discounting the note at Rick's bank would be approximately $4,916.86.