Company X sells on a 1/20, net 60 basis. Customer Y buys goods invoiced at $1,300.

a.	How much can Y deduct from the bill if Y pays on day 30? (Round your answer to the nearest dollar amount.)

Amount deducted

$

b.	What is the effective annual rate of interest if Y pays on the due date rather than on day 40? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Effective compound annual rate

%