Essay
A borrower has two alternatives for a loan: (a) issue a $480,000, 60-day, 8% note or (2) issue a $480,000, 60-day note that the creditor discounts at 8%. (Assume a 360-day year is used for interest calculations.) (a) Calculate the amount of the interest expense for each option.
(b) Determine the proceeds received by the borrower in each situation.
Correct Answer:
Verified
Correct Answer:
Verified
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