Loan agreement with bank and begin taking the discount

Assignment Help Financial Management

Reference no: EM131355407

Simple Simon's Bakery purchases supplies on terms of 1.9/10, net 25 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 10.1% 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.)

Reference no: EM131355407

Questions Cloud

Distributed systems development : One of the first tasks in distributed systems development is the selection of the architecture. The architecture determines how the various parts of the distributed system will operate and communicate.

How information systems influence business to be competitive : B6111.12- Explain how information systems influence businesses to be more competitive, efficient, and profitable. Provide at least one example for each factor.

Which one of the following temperatures is equal to 5°c : In a gasoline engine, the area in the cylinder head where the air-and-fuel mixture is burned is called the. If the absolute pressure of a gas is 550.280 kPa, its gage pressure is. The main difference between the internal combustion engine and the die..

Benefits and challenges of mobile technology : Organizations hope to increase productivity and spur growth when they adopt mobile technology. Unfortunately, integrating new technology does not always go as smoothly as some businesses would like. With a wide variety of users and ever-evolving c..

Loan agreement with bank and begin taking the discount : Simple Simon's Bakery purchases supplies on terms of 1.9/10, net 25 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 ra..

Describes the classification to which depression belongs : Differentiates between "psychological disorders" and "abnormal behavior". Describes the classification to which depression belongs. Differentiates this classification from other classifications of psychological disorders

Personal coming of age experience : A brief story of your personal coming of age experience and how culture was transmitted to you. A brief statement of what the experience meant to you. A brief explanation of the experience in the media or story from coming of age stories that resonat..

Determining the digital conversion : Many traditional analog services have switched over to digital in the past 25 years. Identify three where that transition is complete or almost complete. Why have we seen these changes? What are the benefits of digital technology in each instance?..

In which of the following units is acceleration expressed : Oil flows upward in the wick of a lantern because of the liquid property called.A car travels from Boston to Hartford in 4 hours. The two cities are 240 kilometers apart. What was the average speed of the car during the trip?Within the metric syste..

User Account

All Pages