Evaluating alternative notes

A borrower has two alternatives for a loan: $(1)$ issue a $$660,000,60-$day, $6\%$ note or $(2)$ issue a $$660,000,60-$day note that the creditor

discounts at $6\%.$ Assume a $360-$day year.

a$.$ Compute the amount of the interest expense for each option.

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for each alternative.

b$.$ Determine the proceeds received by the borrower in each situation.

$(1)$ $$660,000,60-$day, $6\%$ interest$-$bearing note

$(2)$ $$660,000,60-$day note discounted at $6\%$

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c$.$ Alternative

is more favorable to the borrower because the borrower