Question: Evaluating Alternative Notes A borrower has two alternatives for a loan: (1) issue a $330,000, 30-day, 6% note or (2) issue a $330,000, 30-day note

Evaluating Alternative Notes A borrower has two alternatives for a loan: (1) issue a $330,000, 30-day, 6% note or (2) issue a $330,000, 30-day note that the creditor discounts at 6%. Assume a 360-day year. a. Calculate the amount of the interest expense for each option. $ for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $330,000, 30-day, 6% simple-interest $ (2) $330,000, 30-day note discounted at 6% $

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