(b) A company buys on terms of 1/10, net 30, but it has not been taking discounts and has actually been paying in 60 days. Accounts payable have risen to K250,000 and suppliers are now threatening to stop supplies unless the company begins making prompt payments. To become current on its account, the company can borrow a 1 year note from the bank at a rate of 15% discount interest, with an 18% for any compensating balance. Determine what action the company should take by calculating; (i) The cost of none free trade credit; and (ii) The cost of the bank loan. (6 marks)