evaluating alternative notes a borrower has two alternatives for a loan: (1) issue a $720,000, 120-day, 6% note or (2) issue a $720,000, 120-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) $720,000, 120-day, 6% simple-interest $_______________
(2) $720,000, 120-day note discounted at 6% $________________