I need help with some review questions for a practice exam. Please show how to work them out so I can understand. Thank you

It means that if the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days. For example, if "$1000 1/10 net 30" is written on a bill, the buyer can take a 1% discount ($1000 x .01 = $10) and make a payment of $990 within 10 days or pay the entire $1000 within 30 days.

A com pany is offering you terms for payment on an invoice of $25,000 of "Discount 1% in 10 days Net 30 days." This means that you can either pay 96% of the amount due in 10 days or pay the entire amount in 30 days. What is the effective rate per year compounded yearly that you will be able to earn on the amount if you take the discount? 20.13% 22.62% 35.14% 14.32%