Three suppliers of Mom Corp. offer different credit terms. Core Co. offers terms 1 /15, net 30. Doug Corp. offers term of 1/10, net 30. Ernst In. offers term of 2/10, net 60. Mom Corp. would have to borrow from a bank at an annual rate of 12% in order to take any cash discounts. Which one of the following would be the most attractive for Mom Corp.? (Assume 360 days a year.)

a. Purchase from Core Co., pay in 15 days and borrow any money needed from the bank. b. Purchase from Core Co., pay in 30 days and borrow any money needed from the bank. c. Purchase from Ernst Inc., pay in 60 days and borrow any money needed from the bank. d. Purchase from Doug Corp and pay in 30 days.

The correct answer is A, please explain why. Thank you