10.00 points Problem 8-29 The Reynolds Company buys from its suppliers on terms of 3/10, net 63. Reynolds has not been utilizing the discount offered and has been taking 75 days to pay its bill. The suppliers seem to accept this payment patterm, and Reynold's credit rating has not been hurt Mr. Duke, Reynolds Company's vice-president has suggested that the company begin to take the discount requires a 13 percent compensating balance on these loans. Current account balances would not be available to meet any of this required compensating balance. a. Calculate the cost of not taking a cash discount. (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 b. Calculate the Effective rate of interest if the company borrow from the bank. (Use 365 days in a year Do not round intermediate calculations. Round the final answer to 2 decimal places.) Effective rate c. Do you agree with Mr. Duke's proposal? References eBook & Resources Problem 8-29 Objective: 08-02 Worksheet 3 5