A supplier is offering your firm a cash discount of 2 percentif purchases are paid for within ten days; otherwise the bill isdue at the end of sixty days. Would you recommend borrowing from abank at an 18 percent annual interest rate to take advantage of thecash discount offer? Explain your answer A supplier is offering your firm a cash discount of 2 percent ifpurchases are paid for within ten days; otherwise the bill is dueat the end of sixty days. Would you recommend borrowing from a bankat an 18 percent annual interest rate to take advantage of the cashdiscount offer? Explain your answer bank A offers loans with a 10 percent stated annual rate and a 10percent compensating balance. You wish to obtain $250000 in a sixmonth loan.c. how much must you borrow to obtain $250000 in usable funds ifyou currently have $30000 on deposit at the bank?d. what is the effective annual rate on a six month loan?