Question: Wilson Montgomery was curious about the difference between a simple discount note and a simple interest note. He is considering taking out one or the

Wilson Montgomery was curious about the difference between a simple discount note and a simple interest note. He is considering taking out one or the other. Both have the same terms: $5,500 @ 6% for 18 months.

a. Calculate the simple interest note proceeds and effective rate.

Simple interest note proceeds:???

Effective rate:??%

b. Calculate the simple discount note proceeds and effective rate. Note: Round 'Effective rate' answer to the nearest tenth percent.

Simple discount note proceeds:???

Effective rate: ??? %

c. Based on your answers to requirement a. and b. which one you would choose. multiple choice

Simple interest note

Simple discount note

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