Early payment discount versus loan Joanne Germano works in an accounts payable department of a major retailer. She has attempted to convince her boss to take the discount on the $\frac{3}{15}$ net $60$ credit

terms most suppliers offer, but her boss argues that giving up the $3\%$ discount is less costly than a short$-$term loan at $12\%.$ Prove to whoever is wrong that the other is correct. $($Note: Assume a $365-$day year.$)$

The cost of giving up the cash discount is

$\%.($Round to two decimal places.$)$

Who is right in this case? $($Select the best answer below.$)$

Joanne

Joanne's boss