In arranging for a 90-day loan from a bank, Markey Company has the option of either (1) giving a $62,000, 10 percent interest-bearing note, dated November 3, that will be accepted at face value; or (2) giving a $62,000 note that will be discounted at 10 percent.

a. What is the amount of interest in each case?

b. What is the amount Markey Company actually receives in each case?