Problem $8-33$

Burt's Department Store needs $$675,000$ to take a cash discount of $\frac{1\mathrm{.}50}{15},$ net $70.$ A banker will loan the money for $55$ days at an interest cost of $$16,600.$

a$.$ What is the annual rate on the bank loan? $($Use $365$ days in a year. Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Annual rate $\%$

b$.$ How much would it cost $($in percentage terms$)$ if Burt's did not take the cash discount and paid the bill in $70$ days instead of $15$ days? $($Use $365$ days in a year. Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$

Cost of not taking a cash discount $\%$

c$.$ Should Burt's borrow the money to take the discount?

Yes

No