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business-accounting question. thanks A borrower has two alternatives for a loan: (a) issue a $480,000,...

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Accounting

business-accounting question. thanks

A borrower has two alternatives for a loan: (a) issue a $480,000, 60-day, 8% note or (2) issue a $520,000, 120-day note that the creditor discounts at 12%. (Assume a 360-day year is used for interest calculations.) Required:

(1) Calculate the amount of the interest expense for each option.
(2) Determine the proceeds received by the borrower in each situation.
(3) Which alternative is more favorable to the lender? Explain.

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