Calculate the approximate annual rate of return on investment that Nadak Company's cash discount terms represent to customers who take the discount. (Assume a credit period of 30 days and 360-days year).

Annual credit sales of Nadak Company total $342.3 million. The firm gives a 2.25% cash discount for payment within 10 days of the invoice date; 80% of Nadak's accounts receivable are paid within the discount period. Required: a. What is the total amount of cash discounts allowed in a year? b. Calculate the approximate annual rate of return on investment that Nadak Company's cash discount terms represent to customers who take the discount. (Assume a credit period of 30 days and 360 -days year)