You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens Bank taken out 60 days ago that is due in 90 days. The amount of the loan is \( \$ 50,000 \), and the rate is \( 9.5 \% \) using ordinary interest. You currently have some excess cash: \( \$ 35,000 \). 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: \( \$ 3 \) 1) sending all of the \( \$ 35,000 \) to citizens Bank as a partial payment on your loan, or 2) 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 " \( 10 \% \) off" the normal cost of \( \$ 35,000 \) for these items. Consider these calculations:

To make a business decision, we need to consider the financial implications of each option. Let's calculate the interest on the loan and the cost of purchasing serving supplies. 1. Sending all of the $35,000 to Citizens Bank as a partial payment on the loan: - The loan amount is $50,000 with a 9.5% interest rate for 90 days. - We need to calculate the interest on the loan for 90 days. 2. Using the $35,000 to purchase serving supplies: - The normal cost of the serving supplies is $35,000. - There is a 10% discount on the normal cost. Let's calculate the interest on the loan and the cost of purchasing serving supplies. Calculate the value by following steps: - step0: Calculate: \(\frac{50000\times 0.095\times 90}{365}\) - step1: Multiply the terms: \(\frac{427500}{365}\) - step2: Reduce the fraction: \(\frac{85500}{73}\) The interest on the loan for 90 days is approximately $1171.23. Now, let's calculate the cost of purchasing serving supplies with the 10% discount. Calculate the value by following steps: - step0: Calculate: \(35000\times 0.1\) - step1: Multiply the numbers: \(3500\) The cost of purchasing serving supplies with the 10% discount is $3500. Considering the financial implications, sending all of the $35,000 to Citizens Bank as a partial payment on the loan would save $1171.23 in interest. On the other hand, using the $35,000 to purchase serving supplies would cost $3500. Therefore, the best business decision would be to send all of the $35,000 to Citizens Bank as a partial payment on the loan.