Your firm is considering two​ one-year loan options for a $541,000 loan. The first carries fees of 2.1% of the loan amount andcharges interest of 4.2% of the loan amount. The other carries feesof 1.8 % of the loan amount and charges interest of 4.7 % of theloan amount.
a. What is the net amount of funds from each​ loan?
b. Based on the net amount of​ funds, what is the true interestrate of each​ loan?
a. What is the net amount of funds from each​loan?
The net amount of funds for option 1 is ​$____. ​(Round to thenearest​ dollar.)
The net amount of funds for option 2 is ​$____. ​(Round to thenearest​ dollar.)
b. Based on the net amount of​ funds, what is the trueinterest rate of each​ loan?
The true interest for loan 1 will be ____%. ​(Round to threedecimal​ places.)
The true interest for loan 2 will be ____%. ​(Round to threedecimal​ places.)
