Question: please help ASAP Squared Equipment needs $380,000 to take a cash discount of 2110 , net 80 , A banker will loan the money for
Squared Equipment needs $380,000 to take a cash discount of 2110 , net 80 , A banker will loan the money for 70 days at an interest cost of $6,300. Please submit all colculations on Moodle. o. What is the annual rate on the bank loan? [2 Marks] (Use 365 days in a year. Do not round intermediote calculations. Round the final answer to 2 decimal places.) Annual rate \% b. How much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 80 days instead of 10 days? [2 Marks] (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimol places.) Cost of not taking a cash discount c. Should the firm borrow the money to take the discount? [ 1 Mark] No Yes
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