Simple Simon's bakery purchases supplies on terms of 1.6 / 10, net 25. if Simple Simon's chooses to take the discount offered, it must obtain a bank loan to me it's short term financing needs. A local bank is quoted Simple Simon's owner an interest rate of 10.2% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount??

The cost of forgoing the discount is _____%. ??