38. A company has daily purchases of $10,000 from its supplier. The supplier offers trade credit under the following terms: 3/20, net 50 days. The company finally chooses to pay on time (pay in the 50th day) but not to take the discount. We assume 365 days per year. What is the average level of the companys free trade credit?

		$30,000
		$170,000
		$200,000
		$300,000

39. Based on the information from Question 38, what is the average level of the companys total trade credit?

		$170,000
		$200,000
		$300,000
		$500,000

40. Based on the information from Question 38, what is the average level of the companys costly trade credit?

		$170,000
		$200,000
		$300,000
		$500,000

41. Based on the information from Question 38, what is the nominal annual cost of the firms costly trade credit?

		28.6%
		29.3%
		33.5%
		37.6%

42. Based on the information from Question 38, what is the effective annual cost of the firms costly trade credit?

		35.8%
		37.6%
		39.5%
		44.9%