7. Commercial paper has no stipulated interest rate. It is sold on a discount basis, and the amount of the discount determines the interest cost to the issuer. On the basis of the following information, determine the percentage interest cost on an annual basis for each of the following issues.

514 Part V Liquidity and Working Capital Management Face Issue Value a $ 25,000 b 100,000 c 50,000 d 75,000 e 100,000 fime to Price Maturity

$24,500 60 days 96,500 180 48,800 90 71,300 270 99,100 30