Suppose you lent $5000 to friend 1 for 18 months at an annual simple interest rate of 9%. After 1 year you need money for an emergency and decide to sell the note to friend 2.
(a) How much does friend 1 owe when the loan is due?
(b) If your agreement with friend 2 means she earns simple interest at an annual rate of 12%, how much did friend 2 pay you for the note?