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plz help A borrower has two alternatives for a loan: (1) issue a $510,000,120-day, 9% note or (2) issue a $510,000,120-day note that the creditor
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A borrower has two alternatives for a loan: (1) issue a $510,000,120-day, 9% note or (2) issue a $510,000,120-day note that the creditor discounts at 9%. Assume a 360 -day year. a. Compute the amount of the interest expense for each option, for each alternative. b. Determine the proceeds received by the borrower in each situation. (1) $510,000,120-day, 9% interest-bearing note (2) $510,000,120 day note discounted at 9% c. Alternative is more favorable to the borrower because the borrower Step by Step Solution
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