Question: borrower has two alternatives for a loan: (1) issue a $270,000,30-day, 7% note or (2) issce a $270,000,30-day note that the creditor discounts at 7%.

borrower has two alternatives for a loan: (1) issue a $270,000,30-day, 7\% note or (2) issce a $270,000,30-day note that the creditor discounts at 7\%. Assume a 360 day year: a. Compute the amount of the interest expense for each option. for each aiternative. b. Determine the proceeds received by the borrower in each situation. (1) $270,000,30-day, 7% interest-bearing note (2) $270,000,30-day note discounted at 7% c. Nterhative is more favorable to the borrower because the borrower

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