The City of Chester Rock , experiencing dire financial problems , has been promised a $ 17.5 million aid payment from the state . The city desperately needs cash to pay its bills no later than May 1. Unfortunately , the state aid will not be paid to the city until May 15. A group of investors agrees to provide the city with a cash payment on May 1 in exchange for the May 15 state aid check . The simple discount rate for this loan will be 3.98 % . 

How much profit will the investors make on this deal ? How much will the city receive on May 1 ?