Thuan runs an online jewelry store. On June 1 2022, his supplier sends him 27 gold rings and an invoice for $5,768.00. The terms on the invoice are 3/10 net 60.

a) How much will Thuan have to pay if he pays the invoice on

June 1

June 11

June 12

July 31

b) Using the daycount convention ACT / 365, what is the effective annual simple interest rate Thuans supplier is charging him?

c) Thuan could use his credit card to pay the discounted invoice on June 11. His credit card charges him 21.900% compounded daily. If he uses his credit card, how much will he owe on the card on July 31?

d) Should Thuan use his credit card on June 11, or should he wait until July 31 to pay the full amount of the invoice?