Receivables investment

McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $656,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 62 days after their purchases. Assume 365 days in year for your calculations.

What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places. %

What is the percentage cost of trade credit to customers who do not take the discount and pay in 62 days? Round your answers to two decimal places. Do not round intermediate calculations. Nominal cost: % Effective cost: %