3. Tone Ltd purchased $5,000 worth of goods from a supplier with the terms 4/7, n/30. Thecompany wanted to pay this account payable within the discount period to get the discount, butthey did not have any cash on hand. They could, however, borrow a short-term loan from thelocal bank at the interest rate of 3% per annum. Should Tone Ltd borrow the money from thebank to pay the supplier early? a) No, Tone Ltd should not as they will incur interests on the bank loan.b) Yes, Tone Ltd should borrow as they have a net benefit from doing soc)Not enough information is given to determine which action is preferabled)Either action gives the same outcome