4. Your supplier grants you credit terms of 2/10, net 35 (a 2.00% discount). What is the effective annual rate of the discount if you purchase $2,900 worth of merchandise? 5. Amie's Active Adventure Co. receives an average of 10 cheques per day. The average amount per cheque is $2400. Ammie is considering a new processing system that is expected to reduce the average collection time by 3 days. The daily interest rate on Treasury bills is .01 percent. What is the expected daily savings of the new system? 6. After a busy summer season the Saskatoon Boat Company has a large cash balance, thanks to hot weather and brisk sales. The company's new CFO is considering investing the cash surplus in five-year high yield bonds currently being offered by another local company. The CEO has asked if these are junk bonds, and the CFO responded by saying that the high return could really help Saskatoon Boat Company to be in a stronger cash position for next summer. What are the pros and cons of this strategy