A firm offers terms of 2/15, net 60. (Enter your answers as directed, but do not round intermediate calculations.)

Requirement 1:

What effective annual interest rate does the firm earn when a customer does not take the discount? (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 3 percent? (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 80 days? (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? (Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Effective annual interest rate

%