Delilah's Haircuts can borrow from its bank at 13 percent to take a cash discount. The terms of the cash discount are 2/15, net 55. Should the firm borrow the funds? 1 Ida Kline borrows $8,000 for 90 days and pays $180 interest. What is the effective rate of interest if the loan is discounted? 2. Mo and Chris's Sporting Goods, Ine., borrows $14,500 for 20 days at 12 percent interest. What is the dollar cost of the loan? 3. Use the formula: Dollar cost Amount Interest Days loan is outstanding of loan borrowed rate Days in the year (360)