She is in the process of negotiating a $5000 order from one of her main suppliers. The supplier has offered a 3% discount if payment is made with 15 days. Just Right Sounds does not have cash on hand to take advantage of the discount. However, the bank will lend money to Just Right Sounds for 30 days at an annual rate of interest of 18%. Isabella is sure that within 30 days there will be enough cash on hand to repay the bank. Should Isabella take the 3% discount using money borrowed from the bank? How much will be gained or lost if the loan is taken? Explain your answer.
3.Isabella Singh manages Just Right Sounds, a stereo components shop.?loan rates
Please do your own homework
No comments:
Post a Comment