2 Tess Fashions has received an electricity bill of $300 due for payment in 30 days’ time. The electricity supplier has offered a 2% discount if the bill is paid within 7 days.

a If Tess currently has a bank overdraft incurring an interest rate of 14%, should she take or forego the cash discount b If Tess currently has excess funds earning an interest rate of 6%, should she take or forego the cash discount?