EX 10-3 Evaluating alternative notes A borrower has two alternatives for a loan: (1) issue a $360,000, 60-day, 5% note or (2) is- sue a $360,000, 60-day note that the creditor discounts at 5%. a. Calculate the amount of the interest expense for each option. b. Determine the proceeds received by the borrower in each situation. OBJ. 1 Which alternative is more favorable to the borrower? Explain