Question: 1 . 3 REQUIRED Study the information given below and advise whether Sheppey Stores should use its overdraft facility ( interest rate 1 8 %

1.3 REQUIRED Study the information given below and advise whether Sheppey Stores should use its overdraft facility (interest rate 18% p.a.) to settle the debt within 15 days. Support your answer with relevant calculations. INFORMATION Semir Wholesalers credit terms to Sheppey Stores are 30 days but the creditor is prepared to allow a rebate of 2.5% if Sheppey Stores pays the account within 15 days. (4 marks)

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