Evaluating alternative notes A borrower has two alternatives for a loan: (1) issue a $510,000, 75-day, 8% note or (2) issue a $510,000, 75-day note that the creditor discounts at 8%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the seadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Compute the amount of the interest expense for each option. Round your answer to the nearest dollar. for each alternative. b. Determine the proceeds received by the borrower in each situation. Round your answers to the nearest dollar. (1) $510,000, 75-day, 8% interest-bearing note: (2) $510,000, 75-day note discounted at 8%: $ c. Alternative is more favorable to the borrower because the borrower Compute payroll K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Regular earnings rate Consultant $2,010 per week Computer Programmer Administrator $30 per hour $46 per hour Overtime earnings rate Not applicable Federal income tax withheld $910 2 times hourly rate 1.5 times hourly rate $258 $515 For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 52 hours and the administrator worked 61 hours. Assume that the social security tax rate was 6.0%, and the Medicare tax rate was 1.5%. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. When required round intermediate calculations and final answers to two decimal places. Consultant Gross pay Net pay 2,010 949.25 Feedback Computer Programmer Administrator 1,920 3,289 1,518 257.33 X Check My Work Gross pay represents the total earnings of an employee for a specific pay period, prior to taxes and deductions. Net pay is also known as take-home pay. 1 2 B Evaluating alternative notes The data for two alternatives for a loan are provided in the table below. D E 3 4 DATA 5 Number of days per year 360 6 7 Note alternatives 8 1-Nondiscounted 2-Discounted 9 Principal amount of note $510,000 $510,000 10 Note interest rate 8% 11 Note discount rate 8% 75 75 12 Term of note, days 13 23456 14 REQUIRED: 15 Determine the amount of interest for each alternative and determine the cash proceeds received by the borrower for each alternative. 16 17 18 Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells show in the orange cells. Transfer amounts to CNOWv2 for grading. 19 Note alternatives 20 1-Nondiscounted 2-Discounted 21 a Amount of the interest expense for each alternative 22 b. Proceeds received by the borrower 23 24 25 26 Formulas G A Compute payroll B D E K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: DATA Regular earnings rate Overtime earnings rate Federal income tax withheld 0 Overtime is paid for hours worked in excess 40 1 Computer programmer worked 52 2 Administrator worked 61 13 Social security tax rate 6.0% 4 Medicare tax rate 1.5% 15 Normal working hours in a week 40 16 Consultant Computer Programmer Administrator $2,010 $30 $46 2 $910 $258 1.5 $515 17 REQUIRED: 18 Determine the gross pay and the net pay for each of the three employees for the current pay period. Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells show in the orange ce amounts to CNOWv2 for grading 19 20 21 22 Regular earnings 23 Overtime earnings 24 Gross pay 25 Deductions 26 Social security tax 27 Medicare tax 28 Federal income tax withheld 29 Total deductions 30 Net pay 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Consultant Computer Programmer Administrator Consultant Formulas Computer Programmer Administrator