Evaluating alternative notes

A borrower has two alternatives for a loan: $(1)$ issue a $$240,000,75-$day, $8\%$ note or $(2)$ issue a $$240,000,75-$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 spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

a$.$ Compute the amount of the interest expense for each option. Round your answer to the nearest dollar.

fill in the blank $1$ of $3$$ for each alternative.

b$.$ Determine the proceeds received by the borrower in each situation. Round your answers to the nearest dollar.

$(1)$ $$240,000,75-$day, $8\%$ interest$-$bearing note: fill in the blank $2$ of $3$$

$(2)$ $$240,000,75-$day note discounted at $8\%$: fill in the blank $3$ of $3$$

c$.$ Alternative

$12$

is more favorable to the borrower because the borrower

receives more cashpays more interesthas an extension of time to pay

$.$ Evaluating alternative notes Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

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)\backslash$$$240,000,75-$day, $8\backslash \%$ interest$-$bearing note: $\backslash (\backslash$$ $\backslash )$

$(2)\backslash (\backslash$$ $240,000,75\backslash )-$day note discounted at $\backslash (8\backslash \%$: $\backslash )?$

c$.$ Alternative is more favorable to the borrower because the borrower