During the last week of March, Sony Stereo's owner approaches the bank for an $80,000 loan to be made on April 1 and repaid on June 30 with annual interest of 12%, for an interest cost of S2.400. The owner plans to increase the store's inventory by $60,000 in April and r tions. The bank's loan officer needs more information about Sony Stereo's ability to repay the loan and eeds the loan to pay for inventory acquisi