Mountain Site Discounts a Customer's 10%,$7,000,90-Day Note Dated August 1,on

Multiple Choice

Mountain Site discounts a customer's 10%,$7,000,90-day note dated August 1,on September 20.The discount period is 40 days,and the bank discount rate is 18%.The maturity value of the note is $7,175.The bank discount is $143.50.The proceeds of the note are:

A) $7,041.50.
B) $7,031.50.
C) $6,856.50.
D) $7,000.00.