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Early payment discount versus loan Patty Reynolds works in accounts payable at a major retailer. She has attempted to convince her boss to take the discount on the 2/15 net 45 credit terms most suppliers offer, but her boss argues that giving up the 2% discount is less costly than a short-term loan at 10%. 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 to two decimal places.)