USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 175 - 177

175. - BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN 175. - BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
175. Use the following information to answer questions 175 - 177: Sunny Manufacturing Systems Inc. is supplied with plastic chips for their plastic injection molding manufacturing process. Their supplier, BioTech Chemical, Inc. offers financing terms of a 3% discount if the accounts payable are paid in 15 days or less with the full balance due in 60 days. Short-term financing available to Sunny is available at an annual rate of 7.9%. Sunny has just purchased $500,000 of plastic chips from BioTech Chemical. What is the amount of money Sunny will save on accounts payable if they accept the discount? a. $15,000 b. $20,000 c. $500,000 d. $39,500