A firm offers terms of 4/12, net 30.

a. What effective annual interest rate does the firm earn when a customer does not take the discount? ____________________ % Points: 2.5

b. What is the effective annual rate if the discount is changed to 3% ? ___________________ % Points: 2.5

c. What is the effective annual rate if the credit period is increased to 45 days? ___________________ % Points: 2.5

d. What is the effective annual rate if the discount period is reduced to 5 days?