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8. You are the owner of four Ice Cream Nacho restaurant locations. You have a...

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8. You are the owner of four Ice Cream Nacho restaurant locations. You have a business loan with PNC taken out 60 days ago that is due in 90 days (i.e. an additional 90 days away). The amount of the loan is $45,000, and the rate is 9.5% using ordinary interest.You currently have excess cash from the tremendous success of the Ice Cream Nachos: $35,000. Due to situations beyond your control, you, as the owner, must make an immediate business decision now to pursue only one of these two choices: A) sending all of the $35,000 to PNC as a partial payment on your loan, or B) using the $35,000 to purchase serving supplies such as food containers, cups, and plastic dinnerware for your inventory. This is the last day to take advantage of the opportunity to save some money due to a special discount price that is "7% off" the normal cost of $25,000 for these items. How much (in $) will you save by purchasing the discounted serving supplies rather than making the partial payment? What is the least amount of money you could have on hand in place of the $35,000, and make out ahead by purchasing supplies at the 7%? Why

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