Paul Stetson is offered credit terms of 3/10 net 40 by his suppliers. Paul, however, usually pays in 35 days. He is now considering borrowing money from his bank in order to take advantage of the cash discount being offered. His bank is willing to lend him $30,000 for 180 days by way of a discounted loan with an interest cost

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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Paul Stetson is offered credit terms of 3/10 net 40 by his
suppliers. Paul, however, usually pays in 35 days. He is
now considering borrowing money from his bank in
order to take advantage of the cash discount being
offered. His bank is willing to lend him $30,000 for 180
days by way of a discounted loan with an interest cost
of $5,000. Required: Advise Paul Stetson on what he
should do giving your reason. I need the formulas and
answers with percentages
Transcribed Image Text:Paul Stetson is offered credit terms of 3/10 net 40 by his suppliers. Paul, however, usually pays in 35 days. He is now considering borrowing money from his bank in order to take advantage of the cash discount being offered. His bank is willing to lend him $30,000 for 180 days by way of a discounted loan with an interest cost of $5,000. Required: Advise Paul Stetson on what he should do giving your reason. I need the formulas and answers with percentages
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