1. Cost of giving up cash discounts Determine the cost of giving up cash discounts under the following terms of sale:1/10 net 180.

(Note: Assume a 365-day year.)

The cost of giving up the cash discount is _______% Round the answers two decimal places.

2.

Cash discount versus loanJoanne Germano works in an accounts payable department of a major retailer. She has attempted to convince her boss to take the discount on the 3/15 net 60 credit terms most suppliers offer, but her boss argues that giving up the 3% discount is less costly than a short-term loan at 11%. Prove to whoever is wrong that the other is correct.

(Note: Assume a 365-day year.)

The cost of giving up the cash discount is ______% Round two decimal places