A firm offers terms of 2/15, net 45.

Requirement 1:

What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not include the percent sign (%). Round your answer 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 3 percent? (Do not include the percent sign (%). Round your answer 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 65 days? (Do not include the percent sign (%). Round your answer 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 include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Effective annual interest rate

%