Early payment discount versus loan Patty Reynolds works in accounts payable at a major retailer. She has attempted to convince her boss to take the discount on the $\frac{1}{15}$ net $90$ credit terms most suppliers offer, but her boss argues that giving up the $1\%$ discount is less costly than a short$-$term loan at $11\%.$ 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.$)$