1. Compute the cost of failing to take the cash discount under the following assumptions:(1) 2/10, net 60;(2) 2/15, net 60;(3) 3/10, net 45; and (4) 3/10, net 50.

1. What is your effective rate of interest on each of the following payment plans if you borrow $20,000 at $900 interest for one year?(1) annual payments; (2) semiannual payments; (3) quarterly payments; and (4) monthly payments.