Roberts Petrol requires $1,000,000 in financing for the next 45 days. The finance department has determined that they have three options.

1. Establish a line of credit with an interest rate of 10%

2. Forgo trade discounts from suppliers with terms of 2/15,n/60

3. Take a discounted loan from the bank at a stated rate of 8%.

a. Calculate the interest rate for option 1 (Establish a line of credit with an interest rate of 10%)

b. Calculate the interest rate for option 2 (Forgo trade discounts from suppliers with terms of 2/15,n/60)

c. Take a discounted loan from the bank at a stated rate of 8%.

d. Which option should Roberts take (1, 2 or 3)?