Simone runs a small business and receives an invoice for $1000 payable in 30 days. The invoice offers a discount of 2% for immediate payment. If Simone doesnt pay immediately and instead pays in 30 days, what effective annual interest rate is she paying?

can we assume 1 month is 30 days then do the following if not how do we answer this question with the formula on the bottom only!!!!

Effective annual interest rate= (1 + i^(m)/m)^m - 1

Monthly Rate or Discount Rate =2%

Yearly Rate= 12mths x 2%=24%

Effective annual interest rate= (1+ 0.24/12)^12 -1 = 0.2682 x 100% = 26.82%

is this correct?