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14. [-13 Points) DETAILS BRECMBC9 10.11.038 MY NOTES ASK YOUR TEACHER You are the owner of four Taco Bell restaurant locations. You have a business
14. [-13 Points) DETAILS BRECMBC9 10.11.038 MY NOTES ASK YOUR TEACHER You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens Bank taken out 60 days ago that is due in 90 days. The amount of the loan is $50,000, and the rate is 9.5 using ordinary interest You currently have some excess cash. You have the choice of sending Citizens $25,000 now as a partial payment on your loan or purchasing an additional $25,000 of serving supplies such as food containers, cups, and plastic dinnerware for your inventory at a special discount price that is 10% off your normal cost of these items. (a) How much interest (In $) will you save on this loan if you make the partial payment and don't purchase the additional serving supplies (Round your answer to two decimal places.) 5 (b) How much (in $) will you save by purchasing the discounted serving supplies and not making the partial payment2 (Hint: Find the difference of the savings on the supplies and the potential savings on the loan found in part (a). Round your answer to two decimal places.) $ (c) What other factors should you consider before making this decision
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