3. Explain why it makes sense for a firm to borrow funds from a bank at 8% interest in order to pay its supplier within 10 days if the terms are 1/10, n/307 Explain the difference between pledging and factoring accounts receivables? a. b. What is a compensating balance? c. What is a commitment fee? d. Why does a firm need to manage its working capital? 3. Explain why it makes sense for a firm to borrow funds from a bank at 8% interest in order to pay its supplier within 10 days if the terms are 1/10, n/307 Explain the difference between pledging and factoring accounts receivables? a. b. What is a compensating balance? c. What is a commitment fee? d. Why does a firm need to manage its working capital