7.2. James Corporation has the following terms with its suppliers: 2/10, net 60. It normally takes the discount and pays within ten days. However, due to cash shortage, it intends to delay the payment. Find the cost of this short-term financing for James.

How do you do this problem using this formula EAR% ((1+2%/1-2%)^(365/50)-1)*100

What would it look like if it was a 3% discount instead of 2%