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A borrower has two alternatives for a loan: (a) issue a $480,000, 60 day, 8% note or (2) issue a $480,000, 60-day note that the

A borrower has two alternatives for a loan: (a) issue a $480,000, 60 day, 8% note or (2) issue a $480,000, 60-day note that the creditor discounts at 8% (Assume a 300-day year is used for nterest calculations) Required Calculate the amount of the interest expense for each option Determine the proceeds received by the borrower in each situation

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