Problem
Mohammed is offered credit terms of 3/10 net 60 by his suppliers. Mohammed however usually pays in 70 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 $30,000 for 180 days by way of a discounted loan with an interest cost of $2,000. Advise Mohammed on what action he should take. (Use 4 decimal places & show all calculations)