Show me the steps to solve Q$4.$ Guardian Hospital buys $$2,000,000$ in medical supplies each year $($at gross prices$)$ from its major supplier, which offers Guardian Hospital terms of $1\mathrm{.}5/10,$ net $30.$ Currently, Guardian Hospital is paying the supplier the full amount due on day $30,$ but it is considering taking the discount, paying on day $10,$ and replacing the costly trade credit with a bank loan that has a $17$ percent annual cost. Assume $360$ days per year. $(15$ points$)$

a$.$ What is the amount of free trade credit that Guardian Hospital obtains from the major supplier? $(3$ points$)$

b$.$ What is the amount of costly trade credit? $(3$ points$)$

c$.$What is the approximate annual percentage cost of the costly trade credit? $(3$ points$)$

d$.$ If the bank loan is used regardless of the cost of trade credit, how much of the trade credit should be replaced? $(3$ points$)$

$17$

e$.$ Based on your calculation, do you recommend Guardian Hospital replace its trade credit with the bank loan? Explain your answer. $(3$ points$)$