Evaluating alternative notes
The data for two alternatives for a loan are provided in the table below.
DATA
Number of days per year		360
		Alternative 1	Alternative 2
Principal amount of note		$510,000	$510,000
Interest rate		4%
Note discount rate			4%
Term of note, days		90	90
Using formulas and cell references, perform the required analysis, and input your answers into the Amount column. Transfer the numeric results for the green entry cells (D15:D17) into the appropriate fields in CNOWv2 for grading.
			Amount	Formulas
a.	Amount of the interest expense for each alternative
b.	Proceeds received by the borrower under alternative 1
	Proceeds received by the borrower under alternative 2

1. Calculate the amount of the interest expense for each option. Round your answer to the nearest dollar.

   $( ) for each alternative.

2. Determine the proceeds received by the borrower in each alternative. Round your answers to the nearest dollar.

   (1) $510,000, 90-day, 4% interest-bearing note: $ ( )

   (2) $510,000, 90-day note discounted at 4%: $ ( )

3. Alternative (1 or 2) is more favorable to the borrower because the borrower ( receives more cash / Pays more interest/ has an extension of time to pay)