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5. Terms of Sale (LO2) A firm offers terms of 1/10, net 30. What effective annual interest rate does the firm earn when a customer

5. Terms of Sale (LO2) A firm offers terms of 1/10, net 30. What effective annual interest rate does the firm earn when a customer does not take the discount? Assume 365 days per year. Without doing any calculations, explain what will happen to this effective rate if: a. The discount is changed to 2%. b. The credit period is increased to 45 days. c. The discount period is increased to 15 days

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