1) If the exact interest on a given principal is $14.40, find the ordinary interest for the same period of time.

2) The difference between the ordinary and exact interest on a certain sum is $0.40. Find the exact interest on this sum.

3) John owes $1500 due at the end of two years and is offered the privilege of paying a smaller sum immediately. At which simple interest rate, 5% or 6%, would his creditor prefer to compute the present value of John's obligation?

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