Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 105. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.)

9.73%

10.67%

9.31%

(8.54%) = Please Solve with steps

8.03%