You are head of the payables department of your company. A bill just came in mail from your main supplier. The amount owed is $60,000, terms 2/10, n/30. You don't have $60,000 in the checking account to pay the bill in time to take the 2% cash discount.

Write a memo to your boss recommending that you borrow the money from the bank (the current interest rate is 5%) to pay the bill in time to take the discount. You have a line of credit set up with the bank so borrowing short term is easy. You know your boss is not going to understand how paying 5% interest to the bank to save 2% on the bill is a good idea so be sure your memo is very clear about the potential savings (in dollars) to the company if he takes your advice.