A firm offers terms of 2/20, net 50. a. What effective annual interest rate does the firm
Question:
A firm offers terms of 2/20, net 50.
a.What effective annual interest rate does the firm earn when a customer does not take the discount?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)b.What effective annual interest rate does the firm earn if the discount is changed to 3 percent?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)c.What effective annual interest rate does the firm earn if the credit period is increased to 70 days?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)d.What effective annual interest rate does the firm earn if the discount period is increased to 25 days?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)