Question: A borrower has two alternatives for a loan: (1) issue a $600,000, 30-day, 7% note or (2) issue a $600,000, 30-day note that the creditor

A borrower has two alternatives for a loan: (1) issue a $600,000, 30-day, 7% note or (2) issue a $600,000, 30-day note that the creditor discounts at 7%. Assume a 360-day year. a. Compute the amount of the interest expense for each option. $fill in the blank 1 for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $600,000, 30-day, 7% simple-interest (2) $600,000, 30-day note discounted at 7%

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