1. Brand Advertising is offered a 3/10 net 40 trade discount by its supplierIn the past Brand has been able to get away with paying for supplies on credit in 60 daysSince it doesn't have money on hand to take advantage of the discount, it tries to negotiate a loan with Second Canadian Bank. The amount of $375,000 with a 15% compensating balance and a $5,500 interest charge has been negotiated for the month of MayBrand already maintains a $16,250 balance at the bankCompute the annual rate of interest on the loan, and the cost of not taking the discountWhich one should Brand take?

explain step wise if possible also show the number or time line