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A bank has $750,000 to lend for 7 months. It can lend it to a local contractor at a simple interest rate of 12% or

A bank has $750,000 to lend for 7 months. It can lend it to a local contractor at a simple interest rate of 12% or it can lend it to a small business that will pay 12% compounded monthly. If the bank wants to maximize its interest earned, who should receive the loan(contractor or business) and what is the additional interest earned?

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