A farmer purchases $500 per day of input supply, 360 days per year. This totals annual...

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A farmer purchases $500 per day of input supply, 360 days peryear. This totals annual purchases of $180,000. If the farmer takesthe early payment discount, he saves 3% of $180,000, or $5,400.Since the farmer always pays each invoice on the tenth day, therewill be $5,000 owed in accounts payable at all times.
1) If the farmer pays all invoices on the thirtieth day, thebalance in accounts payable is:
2) If the farmer pays all invoices on the thirtieth day, he hasobtained an additional financing of:
3) If the farmer pays all invoices on the thirtieth day, hisbalance in accounts payable will increase. What is the approximateinterest rate on this financing?

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A farmer purchases $500 per day of input supply, 360 days peryear. This totals annual purchases of $180,000. If the farmer takesthe early payment discount, he saves 3% of $180,000, or $5,400.Since the farmer always pays each invoice on the tenth day, therewill be $5,000 owed in accounts payable at all times.1) If the farmer pays all invoices on the thirtieth day, thebalance in accounts payable is:2) If the farmer pays all invoices on the thirtieth day, he hasobtained an additional financing of:3) If the farmer pays all invoices on the thirtieth day, hisbalance in accounts payable will increase. What is the approximateinterest rate on this financing?