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A borrower has two alternatives for a loan: (1) issue a $180,000, 45-day, 10% note or (2) issue a $180,000, 45-day note that the creditor

A borrower has two alternatives for a loan: (1) issue a $180,000, 45-day, 10% note or (2) issue a $180,000, 45-day note that the creditor discounts at 10%. a. Calculate the amount of the interest expense for each option. b. Determine the proceeds received by the borrower in each situation. c. Which alternative is more favorable to the borrower

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