Payne Industries Can Borrow Money from the Local Bank at 14%.The

Payne Industries can borrow money from the local bank at 14%.The company just acquired inventory costing $2,900,which has terms of 2/10,n/30.Assuming a 365-day year,which of the following statements is true?

A) Do not pay within the discount period since the effective annual rate of the discount is 37.2%,while the cost to borrow money is 14%.
B) Pay within the discount period since the effective annual rate of the discount is 37.2%,while the cost to borrow money is 14%.
C) Do not pay within the discount period since the effective annual rate of the discount is 24%,while the cost to borrow money is 14%.
D) Pay within the discount period since the effective annual rate of the discount is 24%,while the cost to borrow money is 14%.
E) Do not pay within the discount period since the 2% discount is less than the 14% cost to borrow money.