A firm offers terms of 1/10, net 30.

Requirement 1:

What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Effective annual interest rate

%

Requirement 2:

What effective annual interest rate does the firm earn if the discount is changed to 2 percent? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Effective annual interest rate

%

Requirement 3:

What effective annual interest rate does the firm earn if the credit period is increased to 40 days? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Effective annual interest rate

%

Requirement 4:

What effective annual interest rate does the firm earn if the discount period is increased to 20 days? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Effective annual interest rate

%