Can sokmekne explain these equations I don't think I understand completely. Thank you

uestion Customers usually pay within the discount period because the savings are substantial. With terms 2/10, n/30, customers save 2 percent by paying 20 days early (on the 10th day instead of the 30th). This translates into a 37 percent annual interest rate. To calculate the annual interest rate, first compute the interest rate for the discount period. When the 2 percent discount is taken, the customer pays only 98 percent of the gross sales price. For example, on a $100 sale with terms 2/10, n/30, $2 would be saved and $98 would be paid 20 days early. The interest rate for the 20-day discount period and the annual interest rate are computed as follows: Amount Saved Amount Paid 365days = Annual Interest Rate 20 days Interest Rate for 20 Days Interest Rate for 20 Days x 365 day. 3723% Annual =2.04% for 20 Days 204% 20days Interest Rate As long as the bank's interest rate is less than the interest rate associated with failing to take cash discounts, the customer will save by taking the cash discount. For example, even if credit customers had to