purchases supplies on terms of 1.7/10, net 30. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A ocal bank has quoted Simple Simon's owner an interest rate of 11.9% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Hint: Use 65 days for a year.) The cost of forgoing the discount is %. (Round to one decimal place.) Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Select the best choice below.) OA. Simple Simon's should enter into the loan agreement with the bank and begin taking the discount. OB. Simple Simon's should not enter into the loan agreement but should begin taking the discount. OC. Simple Simon's should enter into the loan agreement but not begin taking the discount. OD. Need more information to answer the question.
purchases supplies on terms of 1.7/10, net 30. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A ocal bank has quoted Simple Simon's owner an interest rate of 11.9% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Hint: Use 65 days for a year.) The cost of forgoing the discount is %. (Round to one decimal place.) Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Select the best choice below.) OA. Simple Simon's should enter into the loan agreement with the bank and begin taking the discount. OB. Simple Simon's should not enter into the loan agreement but should begin taking the discount. OC. Simple Simon's should enter into the loan agreement but not begin taking the discount. OD. Need more information to answer the question.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:Simple Simon's Bakery purchases supplies on terms of 1.7/10, net 30. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A
local bank has quoted Simple Simon's owner an interest rate of 11.9% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Hint: Use
365 days for a year.)
The cost of forgoing the discount is %. (Round to one decimal place.)
Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Select the best choice below.)
A. Simple Simon's should enter into the loan agreement with the bank and begin taking the discount.
B.
Simple Simon's should not enter into the loan agreement but should begin taking the discount.
C.
Simple Simon's should enter into the loan agreement but not begin taking the discount.
O D. Need more information to answer the question.
Expert Solution
Step 1
Given that
Simson's Bakery purchases supplies on the terms of 1.7/10
The interest rate is 11.9%
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