Claude Scales, a Commercial Fisherman, Bought a New Navigation System

Short Answer

Claude Scales, a commercial fisherman, bought a new navigation system for $10,000 from Coast Marine Electronics on March 20. He paid $2000 in cash and signed a conditional sales contract requiring a payment on July 1 of $3000 plus interest on the $3000 at a rate of 11%, and another payment on September 1 of $5000 plus interest at 11% from the date of the sale. The vendor immediately sold the contract to a finance company, which discounted the payments at its required return of 16%. What proceeds did Coast Marine receive from the sale of the contract?