Suncoast Boats Inc. estimates that, because of the seasonal nature of its business, it will require

an additional $$2\mathrm{.}9$ million of cash for July. Suncoast Boats has the following four options available for

raising the needed funds.

Establish a $1-$year line of credit for $$2\mathrm{.}9$ million with a commercial bank. The commitment fee

will be $0\mathrm{.}5\%$ per year on the unused portion, and the interest charge on the used funds will be

$15\%$ annually. Assume the funds are needed only in July, with $30$ days in July and $360$ days in the

year.

Forgo the trade discount of $\frac{2}{10},$ net $40,$ on $$2\mathrm{.}9$ million of purchases during July. Assume there

are $360$ days in a year.

Issue $$2\mathrm{.}9$ million of $30-$day commercial paper at a $13\mathrm{.}5\%$ annual interest rate. The total

transaction fee $($including the cost of a backup credit line$)$ for using commercial paper is $0\mathrm{.}5\%$ of

the amount of the issue.

Issue $$2\mathrm{.}9$ million of $60-$day commercial paper at a $13\%$ annual interest rate plus a transaction

fee of $0\mathrm{.}5\%.$ Because the funds are required for only $30$ days, the excess funds $($ $$2\mathrm{.}9$ million$)$ can

be invested in August's $13\mathrm{.}4\%$ per annum marketable securities$.$ The total transaction costs of

purchasing and selling the marketable securities is $0\mathrm{.}4\%$ of the amount of the issue.

What is the dollar cost of each financing arrangement? Do not round intermediate calculations. Round

your answers to the nearest dollar.

$(1)$ Line of credit: $

$(2)$ Trade discount $($using nominal rate$)$: $

$(3)30-$day commercial paper: $

$(4)60-$day commercial paper: $