A firm offers terms of 2/10, net 38.

What effective annual interest rate does the firm earn when a customer does not take the discount?

Effective Annual Rate

A.30.13% B. 20.65% C. 28.06% D. 30.73% E, 28.92%

If the discount is changed to 4 percent, what will be the effective annual interest rate?

A. 70.26% B. 285.84% C. 64.32% D. 71.66% E. 68.85%

If the credit period is increased to 54 days, what will be the effective annual interest rate?

A. 18.25% B. 6.08% C. 27.86% D. 18.61% E. 17.88%

If the discount period is increased to 19 days, what will be the effective annual interest rate?

A.47.42% B.91.90% C.28.06% D.48.37% E.45.52%