Mortgage payable details:

Long$-$term note details:

$$140,000,5-$year note with an annual interest rate of $6\%.$ Annual interest is due each December $31.$ The principal is due January $1,2032.$

$($a$)$

Your answer is correct.

Indicate the interest expense for the year ending December $31,2027,$ assuming Robinson chooses $(1)$ the mortgage payable and $(2)$ the note payable.

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$($b$)$

Your answer is incorrect

Indicate the total cost of borrowing for each option assumed in part $($a$).$