Evaluating alternative notes

A borrower has two alternatives for a loan: $(1)$ issue a $$540,000,60-$day, $6\%$ note or $(2)$ issue a $$540,000,60-$day note that the creditor discounts at $6\%.$ Assume a $360-$ day

year.

a$.$ Compute the amount of the interest expense for each option.

$$,x$ for each alternative.

b$.$ Determine the proceeds received by the borrower in each situation.

$(1)$ $$540,000,60-$day, $6\%$ interest$-$bearing note

$(2)$ $$540,000,60-$day note discounted at $6\%$

c$.$ Alternative $$ is more favorable to the borrower because the borrower receives more cash $.$