Problem 8-2 Cash discount decision (LO8-1] Regis Clothiers can borrow from its bank at 13 percent to take a cash discount. The terms of the cash discount are 2/20, net 50. 2. Compute the cost of not taking the cash discount (Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places.) Cost of not taking a cash discount % b. Should the firm borrow the funds? Yes Problem 8-18 Effective rate under different terms (LO8-2] If you borrow $4,600 at $850 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) Effective Rate of Interest 18 471% % a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments 0% % Problem 8-17 Effective rate under different terms [LO8-2] Your company plans to borrow $13 million for 12 months, and your banker gives you a stated rate of 20 percent Calculate the effective rate of interest for the following types of loans. a. Simple 20 percent interest with a compensating balance of 12 percent (Use a 360-day year. Input your ans rounded to 2 decimal places.) Effective rate of interest % b. Discounted interest (with no compensating balance). (Input your answer as percent rounded to 2 decimal p Effective rate of interest % c. An installment loan (12 payments). (Input your answer as a percent rounded to 2 decimal places.) Fffective rate of interest b. Discounted interest (with no compensating balance). (Input your answer as percent rounded to 2 decimal places.) Effective rate of interest % c. An installment loan (12 payments). (Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest 98 d. Discounted interest with a compensating balance of 6 percent (Use a 360-day year. Input your answer as a perce decimal places.) Effective rate of interest