Problem: On June 1, Fanger and Rampke buy merchandise amounting to $3000. If they pay cash, they will get a 2% discount. To take advantage of this cash discount, they sign a 60-day non interest bearing note at their bank which charges 10% interest.
Q1. What should be the face value of the note to give them the exact amount they need to pay cash for the merchandise?
Q2. How much do they save by taking this option?