By borrowing the money on the last day of the discount period and repaying it on the last day of the credit period,the loan would be outstanding for 20 days (30-10).Interest on the loan is calculated at 9% for 20 days.The amount saved is the difference between the discount received for paying on time and the amount of interest expense that would be paid to the bank.

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The Answer of By borrowing the money on the last day of the discount period and repaying it on the last day of the credit period,the loan would be outstanding for 20 days (30-10).Interest on the loan is calculated at 9% for 20 days.The amount saved is the difference between the discount received for paying on time and the amount of interest expense that would be paid to the bank.

By Borrowing the Money on the Last Day of the Discount