Evaluating Alternative Notes A borrower has two alternatives for a loan:(1) year. a. Calculate the amount of the interest expense for each option issue a $360,000, 60-day, 5% note or (2) issue a $360,000, 60-day note that the creditor discounts at 5%. Assume a 360-day for each alternative. b. Determine the proceeds received by the borrower in each situation (1) $360,000, 60-day, 5% simple-interest (2) $360,000, 60-day note discounted at 5% c. Alternative alternative 2 is is more favorable to the borrower since the effective interest rate on alternative 1 is and the effective rate on