Problem 26-08 Which of the following terms of trade credit is the more expensive? Assume there are 365 days in a year. Round your answers to one decimal place. a. A 3 percent cash discount if paid on the 20th day with bill due on the 40th day (3/20, net 40) The simple interest rate: % The compound interest rate: % b. A 1 percent cash discount if paid on the 5th day with bill due on the 30th day (1/5, net 30) The simple interest rate: % The compound interest rate: is the more expensive. -Select