Northeast Baptistbuys $500,000 of a particular itema year (at gross prices) from its major supplier Cardinal Health, which offers NE Baptist terms of 3/20, net 60. Currently, the hospital is paying the supplier the full amount due on Day 60, but it is considering taking the discount, paying on Day 20 replacing the trade credit with a bank loan that has a 12 percent annual cost.

a. What is the amount of free trade credit that Baptist obtains from Cardinal Health? (Assume 360 days per year throughout this problem)

Note:format is $xx,xxx.xx

b. What is the amount of costly trade credit? Note:format is $xx,xxx.xx

c. What is the approximate annual cost of the costly trade credit? Note:format is xx.x%

d. Should Baptist replace its costly trade credit with the bank loan? Note:Format is "Yes" or "No"

The answers I got were:

a. $1,388.89

b. $ 34,722.22

c. 27.8%

d. NO

Is this correct?