Should Simple Simon enter the loan agreement and why

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Problem 1: Simple Simon's Bakery purchases supplies on terms of 1.5/10, 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 11.7% 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.)

Reference no: EM132760258

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