Your firm is considering two? one-year loan options for a $ 489comma 000 loan. The first carries fees of 2 % of the loan amountand charges interest of 3.7 % of the loan amount. The other carriesfees of 1.8 % of the loan amount and charges interest of 4.5 % ofthe loan amount.
a. What is the net amount of funds from each? loan?
b. Based on the net amount of? funds, what is the true interestrate of each? loan?
