A firm offers terms of 2.0/7, net 60.

a.	What effective annual interest rate does the firm earn when a customer does not take the discount?(Use 365 days a year.Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Effective annual interest rate

%

b.	What effective annual interest rate does the firm earn if the terms are changed to 3/7, net 60, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Effective annual interest rate

%

c.	What effective annual interest rate does the firm earn if the terms are changed to 2/7, net 75, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Effective annual interest rate

%

d.	What effective annual interest rate does the firm earn if the terms are changed to 2/12, net 60, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Effective annual interest rate

%

rev: 12_07_2012