Philips N.V. requires Lit 500 million for one year. It can borrow from Banca di Roma at a 15% interest rate. How many lira must Philips borrow to receive this amount if the loan is quoted on a discount basis?

a. Lit 667 million.

b. Lit 556 million.

c. Lit 435 million.

d. Lit 588 million.