Company XYZ purchased $$150,000$ worth of material on credit. The credit terms are $\frac{3}{10}$ net $30.$

a$.)$ If Company XYZ does not take the discount, what is the APR and EAR for the cost of trade credit?

b$.)$ Which rate $($EAR or APR$)$ is the true cost of trade credit?

c$.)$ Company XYZ is offered a $$150,00090-$day add$-$on interest bank loan with an annual rate of $12\%$ and

$3$ monthly payments. Calculate the $90-$day interest rate, the total interest to add on$,$ and the $2$ of $5$

payment amount $($use a $360-$day year$).$

d$.)$ What are the APR and the EAR of the bank loan?

e$.)$ Which source of financing is cheaper between accounts payable financing $($not taking the discount$),$

or the bank loan? Which one should XYZ take and why?