Evaluating Alternative Notes A borrower has two alternatives for a loan: (1) issue a $210,000, 30-day, 8% note or (2) issue a $210,000, 30-day note that the creditor discounts at 8%. 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) $210,000, 30-day, 8% interest-bearing note (2) $210,000, 30-day note discounted at 8% c. Alternative is more favorable to the borrower because the borrower receives more cash pays more interest has an extension of time to pay