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Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms:

Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $17,500 at 8% for 4 years. Use ordinary interest as needed.

a. Calculate the simple interest note proceeds.

b. Calculate the simple discount note proceeds.

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