Xin Liang is offered credit terms of 3/10 net 30 by his suppliers. Xin however usually pays in 40 days. He is now considering borrowing money from his bank in order to take advantage of the cash discount being offered. His bank is willing to lend him $40,000 for 180 days by way of a discounted loan with an interest cost of $3,600. (Note: Use 4 decimal places for your calculations)

Required: Advise Xin Liang on what he should do, giving your reason.