Evaluating alternative notes A borrower has two alternatives for a loan: (1) issue a $360,000, 60-day, 8% note or (2) issue a $360,000, 60-day note that the creditor discounts at 8%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet a. Calculate the amount of the interest expense for each option. Round your answer to the nearest dollar $ for each alternative. b. Determine the proceeds received by the borrower in each alternative. Round your answers to the nearest dollar. (1) $360,000, 60-day, 8% interest-bearing note: $ (2) $360,000, 60-day note discounted at 8%: $ C. Alternative is more favorable to the borrower because the borrower receives more cash Feedback A 360-day year is used when calculating interest on a noto. Recall the definition of proceeds is the amount that the borrower receives in cash or merchandise template Edit E F G H 1 6 1 Evaluating alternative notes 2 The data for two alternatives for a loan are provided in the table below. 3 4 DATA 5 Number of days per year 360 Alternative 1 Alternative 2 7 Principal amount of note $360,000 $360,000 8 Interest rate 8% 9 Note discount rate 8% 10 Term of note, days 60 60 11 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 (D15:017) into the appropriate fields in CNOWV2 for grading 12 13 14 Amount Formulas 15 la Amount of the interest expense for each alternative 16 bProceeds recelved by the borrower under alternative 1 17 Proceeds received by the borrower under alternative 2 18 19 20 21