Simple Simon's Bakery purchases supplies on terms of 1/20, net 60. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 9.4% APR with montly compounding on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? (Hint: Use 365 days for a year.)

Answer: The cost of forgoing the discount is %. (Calculate EAR. Round to two decimal places.) The EAR of the local bank's loan is %. (Round to two decimal places.) Should Simple Simon's enter the loan agreement with the bank and begin taking the discount? Choose from the following. (Answer "A", "B", "C", or "D".) A. Simple Simon's should enter into the loan agreement with the bank and begin taking the discount. B. Simple Simon's should not enter into the loan agreement with the bank and simply forego the discount. C. Simple Simon's should not enter into the loan agreement with the bank and should also take the discount. D. Need more information to answer the question.