1. Sam would like to buy the promissory note and she has the following two options. The followings are the two promissory notes that she can purchase. If she would like to spend MAXIMUM at this moment, which promissory note should she purchase? (20 marks)

1. 80 days after issued of 180-day promissory note for $ 12,000. The money market rate for this type of promissory note is 8 %.
2. 110 days before expiry of 180-day promissory note for $ 14,000. The money market rate for this type of promissory note is 4%.