20-1)

Company X sells on a 2/10, net 60, basis. Customer Y buys goods with an invoice of $3,000.

a.How much can company Y deduct from the bill if it pays on day 10?

Discount$

b.How many extra days of credit can company Y receive if it passes up the cash discount?

Number of daysdays

c.What is the effective annual rate of interest if Y pays on the due date rather than day 10?(Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Effective annual rate%