Fastchip Corp. purchases goods from a single supplier on terms of 3/5 net 35. What is the cost to Fastchip if it chooses not to take advantage of the trade discount offered? Estimate the cost using the effective annual rate (EAR).

• A.

  44.9%

• B.

  66.1%

• C.

  39.9%

• D.

  42.5%

• E.

  51.3%