Krueger's Bike Shop receives the following trade discounts: 35/25/15. The manufacturer s price list indicates that 35 percent off list price is for purchasing bikes in quantities of 100 or more, 25 percent off list price is for assembling the bikes for customers, and 15 percent is for sales promotion and local advertising. The manufacturer s list price is $600. Krueger is given a credit term of 4/15, n/45. If he has a cash flow problem and waits until day 45 to pay the manufacturer, what is his effective cost of financing for the year?

a. $37.25% b. 50.69% c. $101.39% d. $44.37%