posted by becky on .
Carnation needs to buy a $12,500 part the part company is offering cash discount terms of 4/10, n30. Carnation has a tight cash flow, wants to discount a 180 day note dated February 12 with a maturity value of $10,300. Bank offers a discount rate of 6%. Should carnation discount the note today, July 20, in order to get money needed for the cash discount? what is the amount of savings or loss?