Bernie$$s Macs requires $$600,000$ in financing for a $60-$day period. Three alternatives are being considered.

a$.$ Establish a line of credit with the bank at an interest rate of $7$ percent. The bank will require an annual commitment fee of $$4,750$ to establish the line of credit.

b$.$ Forgo trade discounts from suppliers on terms of $2/30,$ net $90.$

c$.$ Issue commercial paper for $60$ days at a discount of $1\mathrm{.}91$ percent.

a$.$ What would be the rate of interest for bank loan? $($Use $365$ days in a year. Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Rate of Interest for bank loan

$\%$

b$.$ What would be the cost of forgoing the cash discount? $($Use $365$ days in a year. Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Cost of forgoing the cash discount

$\%$

c$.$ What would be the price of commercial paper? $($Use $365$ days in a year. Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Discounted commercial paper

$\%$

d$.$ Which alternative should be selected?

multiple choice

Bank loan

Cost of forgoing discount

Commerical paper