Freeman Builders, Inc. buys on terms of 2/15, net 30. It does not take discounts, and it typically pays 60 days after the invoice date. What is the company's nominal cost of trade credit, based on a 365-day year?

a. 17.81%

b. 13.41%

c. 63.49%

d. 49.66%

e. 16.55%

Andrews Corporation buys on terms of 1/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective cost of its trade credit? (Use a 365-day year.)

	a.	17.52%
	b.	7.37%
	c.	7.61%
	d.	9.96%
	e.	10.42%