Hand-to-Mouth (REaM) is currenty cash-contrained, and must make a decision about whether to delay paping one of is supplers, or take out a loan They owe the suppier \$50,500 with terms of 22/10 Not 40 , so the supplier wil give them a 2.2% discount if they pay by today (When the discount period expires). Aternatively, they can pay the full $10,500 in one month when the invoice is due. H2M is considering three options: Altemative A: Foego the droount on its trade credit agreement, wat and pay the ful $10,500 in one month. balance of 5.3% of the face value of the loan and wil charge a 390 losm origination foe. Because HaM has no cash, it will need to borrow the funds to corer these additional amounts as well. H2M with need to borrow to cover. Allernative A: The eftective annusi cont is 6. (Round to two decimal places.)