Gold Appliances purchases $20.0 million of inventory from its suppliers every year. They are looking to finance $1,460,000 for 60 days, to cover the purchase of inventory for the Christmas season. (They need $1,460,000 for 60 days.) Three alternatives are being considered: 1. Increase accounts payable: Supplier's terms are 1/10 net 30 and Gold Appliances has traditionally taken advantage of the discount, paying their suppliers in 10 days. If Gold Appliances chooses to forego the discount, they would pay their suppliers in 30 days, instead of 10. 2. Midland Bank will let Gold Appliances borrow money, but they require a compensating balance of 15.0 percent of the loan balance be maintained by Gold Appliances at all times. (There are currently no funds on deposit with Midland Bank that would count toward compensating balances.) They will charge 9.00 percent interest per annum for the loan. (Remember calculate interest for just 60 days, not a full year) 3. Issue commercial paper for 60 days, sold at a discounted price of 98.224 percent of the maturity value. Required: (Round all dollar figures to zero (0) decimal places (eg $123,456) and all percentages to two (2) decimal places (eg 12.34%) A. If Gold Appliances pays their suppliers in 30 days: 1. Assuming annual purchases of inventory remain at $20.0 million, what will be the increase in accounts payable? New Accounts Payable Old Accounts Payable Difference in Accounts Payable $ $ 2. What is the annual Interest rate associated with foregoing the discount