Evaluating Alternative Notes A borrower has two alternatives for a loan: (1) issue a $540,000, 90-day, 9% note or (2) issue a $540,000, 90-day note that the creditor discounts at 9%. Assume a 360-day year.
a. Calculate the amount of the interest expense for each option.
b. Determine the proceeds received by the borrower in each situation.
(1) $540,000, 90-day, 9% interest-bearing note
(2) $540,000, 90-day note discounted at 9%
c. Alternative___is more favorable to the borrower since the effective interest rate on alternative 1 isand the effective rate on alternative 2 is.

Aztic inc., a manufacturer of sports goods, plans to expand its operations to various other countries. during market research, it avoids countries where the dominant population is mostly rural. in this case, aztic inc. is assessing the of the countries

Martha is the head of the accounts department in a small manufacturing company. the company follows the accrual-basis method of accounting. it recently purchased raw materials worth $5,000 from its vendors. however, the company paid only $3,000 to its vendors. it plans to pay the remaining amount after three months. considering this information, which entry should martha record in the company’s accounts? a. $5,000 as accounts receivable b. $3,000 as accounts payable c. $2,000 as accounts payable d. $2,000 as accounts receivable

Which actions can you improve your credit score? (multiple can be selected)having a good credit score should be your prime objective as credit companies analyze your creditworthiness before giving you a loan. there are certain guidelines you can follow to ensure you have a good credit score. always pay your mortgage interest on time. if you are a student, make student loan inquiries before taking any loan. if you have multiple credit cards, manage them judiciously. maintain a healthy balance in your bank account.1. always pay your mortgage interest on time.2. if you are a student, make student loan inquiries before taking any loan.3. if you have multiple credit cards, manage them judiciously.4. maintain a healthy balance in your bank account.