Part 1. Post Card Depot, an large retailer of post cards, orders 3,920,294 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 16 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.17 per post card per year. The ordering cost is $242 per order.

What is the annual ordering cost of the post card inventory? Round to the nearest two decimal places.

Part 2. Book Depot Inc. sells on terms of 3/20, net 85. What is the implicit cost of trade credit under these terms? Use a 365-day year. Round to the nearest two decimal places in percentage form.