Please show step by step how to find the EAR given the info.

1. A supplier offers its customers payment terms of 1.75%20, net 50 . What is the exact equivalent annual borrowing rate if the customer were to never pay early, but pay on day 50 ? (a year has 360 days) a) 19.7% b) 26.8% c) 21% d) 23.1% e) 24% 2. A supplier offers its customers payment terms of 1.75%20, net 50 . Customer XYZ is always paying late, however: XYZ typically pays the supplier on day 65 (instead of on day 50). So far, the supplier has allowed this. What is the exact equivalent annual borrowing rate of the customer now? (a year has 360 days) a) 14.9% b) 21.8% c) 13.1% d) 6.8% e) 19.7%