A firm buys on terms of 3/15 net 45. (use a 365-day year ) ?

1 .what is the periodic non-free credit?

a) 3.09%

b)13.09%

c)28.85%

d) 37.60%

e)44.81%

2. what is the annual percentage rate (APR) ?

a) 3.09%

b)13.09%

c)28.85%

d) 37.60%

e)44.81%

3. what is the effective annual rate (EAR)?

a) 3.09%

b)13.09%

c)28.85%

d) 37.60%

e)44.81%