A retailer owes a wholesaler $300,000 due in 45 days. If the payment is 15 days late, there is a 1% penalty charge. Since the bill isn't due immediately, the retailer can invest the $300,000 in a certificate of deposit and make money on the interest. The retailer has two options: a 45-day certificate of deposit (CD) earning 6% per year simple interest or a 60-day certificate earning 7% per year simple interest.